If you have a young driver in your home, you’ve no doubt seen the impact this has on your car insurance premiums. Young drivers are generally assessed higher premiums rates, even if they have never had an accident or ticket. Insurance companies view them as a group, and they are seen as higher risk. But there are ways you can help reduce your family’s premiums, even with a young driver.
Drivers ed discounts
In order to find the cheapest car insurance for young drivers you will have to do your research. Car insurance for young female drivers is also widly available so ask your provider. Many companies will offer discounts up to 20 percent to any driver, regardless of age, who takes additional driving lessons, whether it is the drivers ed course offered in high school, private lessons, or a defensive driving course. Others only offer the discount to drivers under the age of 21, but this will still apply for your young driver. Young drivers can help offset their usually high premiums by taking one or more of these courses, because it shows the insurance company they have learned safe driving techniques. It can also help them avoid future accidents, which of course would affect their rates.
Combining policies
Young drivers will typically see lower premiums by staying on their parents’ policy rather than getting separate young drivers car insurance. This is true whether the young driver is adding an additional car to the household or driving one of the family’s existing cars. Your young driver could still be responsible for paying the difference caused by adding them to your policy, but you want to avoid having them get a separate policy if possible.
Car safety equipment
Most auto insurance companies offer discounts for equipment such as car alarms or anti-theft devices. Make sure the car is always kept locked and parked in a safe place overnight. Proving to the car insurance company that you and your young driver are taking steps to reduce their coverage risks may helps them offer discounts for your young driver.
Cars to avoid
Car insurance companies will typically charge higher premiums for cars that are higher risk, such as large 4×4 trucks or sports cars. If your young driver’s car has a lot of expensive equipment such as after-market radios and speakers or expensive tires and rims, this will increase your premiums. Also, be aware that these add-ons are generally not covered in the event of a theft or accident, unless you have specifically included this coverage in the policy.
Limited use discounts
Some insurance companies offer young drivers a discount if the car qualifies for limited use. Talk to your agent about specific terms, but if you set limits such as not driving after a certain time in the evening, you may qualify for a discount. Other car insurance companies will offer a discount for low mileage drivers, which is helpful if your young driver has a short commute to school, work, or other activities.
Good student discounts
If your young driver maintains a B average or higher, are in the top 20 percent of their class, or are on the dean’s list, they may qualify for as much as a 10 to 25 percent discount on their auto insurance premiums. You can use this as an added incentive to maintain good grades, and save money at the same time!
Additional discounts
Young drivers car insurance quotes can be found easily by contacting the provider. If you pay the annual premium in full, rather than monthly or quarterly payments, you may avoid additional billing fees. Also, if the young driver’s car is relatively inexpensive, as are many starter cars, avoid carrying collision or comprehensive coverage. You’ll have to weigh the replacement or repair costs against the increased premium amounts. When your young driver goes to college, you can temporarily remove them from your policy if they are leaving the car at home. Just remember to add them back for summer and winter breaks.
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