Reduce Cost of Auto Insurance for Young Drivers

Tips for Cutting Automobile Insurance Premiums for Teen Drivers

Sep 22, 2009
Subha Ekambaram

Young Drivers reduce Insurance with Cheap,Safe Car - The Pitzone

Auto insurance for young drivers could get expensive. However, following some simple tips like taking driver ed classes, could help reduce the cost of insurance premiums.

Auto insurance for young drivers is not cheap, as younger and less experienced drivers are more likely to get into accidents. There are statistics from different sources that support this claim.

Statistics Supporting Increased Number of Accidents Among Young Drivers

According to the National Highway Traffic Safety Administration, teens have the highest crash risk of any age group. According to the Insurance Institute for Highway Safety (IIHS), 16-year-olds get into accidents almost six times more often than drivers between the age of 30 and 59.

The following tips could cut some of the costs incurred with insuring teen drivers.

Save on Auto Insurance for Young Drivers by Choosing a Cheap but Safe Car

Having the teen or young driver drive an inexpensive but safe car is a good first step to reducing insurance costs. Also find out how the insurance company assigns cars to drivers in the policy. Some companies assign the most expensive car to insure to the most expensive driver to insure (usually the young teen driver). Switching insurance companies might be a good option to keep costs down if the assignment does not work in the insurer's favor.

How to Get Discounts for Teen Drivers - Good Grades, Driver Ed, Paying in Full

Many insurance companies offer a 10-25% discount to students that maintain a B average or better. This offers younger drivers additional incentive to do better in school. Also, there are other discounts that can be availed of, if the young driver enrolls in driver education courses.

Other ways of getting discounts are adding a teen as an additional driver, instead of setting up an independent insurance policy and paying in full. Some billing fees can be avoided by paying the premium upfront instead of in installments.

Also, choose only essential coverage. Avoid coverage for collision if the cost of the vehicle is insignificant.

How can Parents Help Their Teen Avoid Accidents? - Supervised Driving, Leading by Example

Several states insist on 50 hours of supervised driving. Slower teaching time and continued feedback is likely to be better in the long term for young drivers.

In addition, teens benefit from examples of good driving from their parents. According to a poll commissioned by insurance group Liberty Mutual, nearly 60% of 500 parents with teenage children questioned in an online survey admitted that they chatted on their mobile phones while driving. 42% said they were guilty of speeding and 17% sent a text or email. Young drivers are more likely to follow rules if they see their parents leading by example.

Encourage young driver to stay away from alcohol before getting behind the wheel and distractions like texting and tweeting while driving.

If young drivers exercise sound judgment and utilize available discounts, one can avoid the high cost that is usually associated with insuring a young driver.