Auto Insurance: 3 Tips To Purchase An Affordable Policy For Your Teen

Posted on: 25 September 2019

Due to the fact that teenagers are inexperienced on the road, they are at a higher risk of being involved in auto accidents than other age groups. As a result, it can be expensive to add a teenager to an auto insurance policy. To ensure that you get the most adequate coverage for the most affordable price, here are three things that you should take into consideration when you have a teen reaching driving age.

Make Sure to Shop Around

To minimize your auto insurance premiums while maximizing your policy coverage, it is important to request insurance quotes from at least three insurance companies. While you may end up discovering that it is more affordable to add your teenager to your family's existing auto insurance policy, it is nonetheless important to take the time to explore the options available out there.

Ask About Possible Discounts

Many auto insurance companies will offer discounts for automobiles that have built-in safety devices or anti-theft devices. Some companies will offer reduces premiums for teenagers who can earn a place on the honor roll/dean's list or maintain a certain grade point average. In the event that your teenager is in college, doesn't live at home, and only drives his or her vehicle during breaks (like Christmas and summer) from school, you may be able to secure a reduced premium.

Think About an Independent Policy

Teenagers who are considered minors are required to be added as a driver to the policy of their parents; however, if a teenager is 18 or 19, it may be helpful to have him or her purchase their own individual policy in some instances. For example, if the teenager drives an old vehicle that is of low-value, it may be more cost-effective to purchase a liability-only auto insurance policy on the vehicle while you continue to maintain a full-coverage policy on your own vehicles. It is best to talk to your auto insurance company about what instances it would make sense to maintain your own policy and then purchase an independent policy for your teenager.

The aforementioned tips may prove to be helpful when your teenager starts driving, especially since insurance is already expensive without having a teen driver in the house. If you want to keep your premiums to a minimum in terms of cost when you teen reaches driving age, get in touch with an auto insurance policy in your area with any questions that you may have.


Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!