Adding a teen to the family car insurance policy can cause premiums to sky-rocket.
“The insurance company knows that’s the age group that tends to have the most accidents, unfortunately,” Doug Whiteman, Bankrate.com Insurance Analyst said.
Whiteman said there are five major discounts to take advantage of. Number one, the “good student discount.”
“This is if you have a teenager and your kid is getting good grades in school, there’s a discount available for that,” Whiteman said.
Number two is the “distant student discount.”
“This is if your teenager is attending school away from home, usually 100 miles or more. The insurance company feels it’s less likely that the teen is going to be driving the family car. Therefore, less likely you’ll be filing any kind of a claim related to an accident with that teenager, so you can get a discount off your insurance policy,” Whiteman said.
Number there involves getting educated about driving.
“There are safe driving classes. Often the insurance companies will provide a discount if your teenager takes a class,” Whiteman said.
Number four is getting the teen to drive an older car.
“You want to get an older car that’s safe, but you will cut your car insurance premiums if you have a car that’s been on the road a little while and broken in, as opposed to a brand new car,” Whiteman said.
Number five is utilizing technology to prove good driving behavior.
Some monitoring devices record how often you brake hard and how many miles you drive per day.
“Rig up one of those devices inside of your car. That can show your insurance company that even though you’ve got a kid driving your car around,
the car is being driven safely it’s not being driven hundreds and hundreds of miles, and that can help to lower your premium,” Whiteman said.
Whiteman notes that dollars saved for each discount will differ, depending on the insurance provider.