Adding a teen driver to your auto insurance policy

Teenage drivers do not have driving experience. Drivers aged 16 through 24 are the highest risk drivers in the nation. The premiums associated with teen drivers are higher than typical adult premiums. In order to find rates that are not through the roof, you must be vigilant and compare rates. Here are some other areas to take a look at when it is time for your teen to begin driving.

First check adding teen to your policy

Add your teen to your existing auto insurance policy. Parents will often qualify for good driver discounts that teens do not get yet. Adding a teen to your policy often means they will not pay quite as much. It also means that you qualify for a multiple-car discount by having more than one car covered by the same insurance company. In some cases, it might be a good idea if the parent owned the vehicle and had the teen under his or her policy. In other cases it might be better for the teen to be on their own policy. Check with your insurance company first.

Keep a clean driving record

Talk to your teen about safe driving habits and how traffic violations can increase their rates. In a short period of time, with a clean driving record their premium can drop sharply. With a clean record at age 19, the same coverage could drop up to 35 percent, and by age 21 with a clean record the premium could be lowered another 25 percent. Continue to comparison shop as your teen moves through these age groups, as different companies handle clean driving records at different percentages.

Find all of the discounts you are eligible for

Most insurance companies offer auto insurance premium discounts anywhere from 10% to 30% for teen drivers who maintain a "B" average or better. Some insurers offer a discount for teenagers who have completed drivers training education. Other insurance companies offer their own educational programs for young drivers that are eligible for discounts. Check to make sure all drivers in the household are getting the discounts they are eligible for. If you are adding another car for your teen, make sure you are getting a multiple car discount.

Have your teen drive a safer car

The car your teen drives can make a big difference in the premium. It is generally cheapest to add your teen to your policy as an occasional driver, instead of getting a separate policy. It is also a good idea to pair your teen with your safest car. Do not think of this as just an old car, which might not have current safety features, but a safe car.

Consider raising your deductibles

If your collision and/or comprehensive deductibles are lower than $500 you should consider raising them to the $500 level. This can save you 15-35% on those rates. If you want to save even more, raise your deductible to $1,000 or more. Making claims less than $1,000 will increase the chances of your policy getting canceled.

Compare rates from a wide variety of sources

This is a constant theme, but it is always to your advantage to comparison shop for auto insurance. Each car insurance company customers have different claims experiences which can result in each company charging drastically different premiums for similar coverages. With a teen driver, there is a greater difference in premium prices when you compare. Some auto insurers do not really want to insure teenage drivers and will quote higher rates than others.

Links for teen drivers