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Saving on Car Insurance for Teenagers

July 16, 2013

Tips for saving on car insurance for teenagers

Car insurance for teenagers are expensive. It may cost from double to five times more than car insurance for adults. Teenagers are typically able to get good car insurance rates:

  • have received proper driving lessons from an accredited or state approved driving school or driving instructor;
  • apply safe driving principles;
  • drive a car appropriate for teens or first time drivers;
  • drive a car with a high safety rating;
  • drive the car when necessity arises only e.g. to school or work but not during the weekends;
  • maintain a clean driving record;
  • maintain good grades (large discounts offered by many insurance providers if grades are a B average or above);
  • have the car insurance part of a multi-line insurance policy; and
  • clean driving record.

Other tips for saving on car insurance for teenagers

  • Increase deductibles or excess to lower premium. At the same time, create an emergency fund for repairs necessary for the car after damage from minor accidents. This prevents filing of small claims that could jeopardize a no-claims discount, particularly if the car insurance covers all drivers in the household.
  • For older cars, comprehensive or collision covers may not be worthwhile especially if the car is worth little more than the deductible or excess.
  • Tell the insurance provider if the teen is away at college and will not be using the car to further lower the insurance premium.
  • Ask the insurance provider for any other discounts that are available for teen drivers.

Shop around for car insurance for teenagers or use an intermediary such as a car insurance agent to compare rates. Some insurance companies target the teen and young drivers market, offering much better deals than other insurance companies who do not. Your own insurance company may offer great car insurance rates for adults but not for teen drivers.

Caution

Do not skimp on liability coverage. Recommended minimum limits are as follows:

  • at least $250,000 ┬áper person;
  • at least $500,000 per accident; and
  • at least $100,000 for property damage.

Young drivers are more likely to be involved in an accident with a higher number of serious injuries and fatalities. Liability insurance cover must be adequate.