Teenagers are always so proud to pass their drivers exams and become legal behind the wheel. Parents may also beam with pride. That is until they make a visit to their local insurance agent and discover that young beginning drivers usually have to pay a hefty price for their inexperience. Premium insurance rates for young drivers may be a shock to the family budget, to say the least. For this reason, parents need to educate themselves and their young protégés about ways to save money on car insurance. The following tips should help.
Keep it in the Family
When teens are still living with their parents, it is usually not a problem for the insurance agent to add their name as the driver of one of the family vehicles. This can result in major savings. Some insurance companies will allow agents to do this for college students who live away from home during most of the year as well, particularly if they remain in the same state as their parents. Be sure to ask about any rules relating to this. Families may also get better rates by bundling their childs automobile insurance with other types of policies.
Be Smart about Vehicle Choices
Insurance premiums are based on the replacement costs for the vehicle and the safety record that this particular model has accrued. This means that even though most teens prefer to drive sporty cars with powerful engines, these vehicles are going to engender the highest insurance costs. It is a better idea to let the teen have his or her way with the color and options but to steer them toward less expensive, safer choices.
Care about the Record
Insurance companies look at the driver’s record to determine rates. Speeding tickets, driving under the influence infractions and other bad driving issues can cause automobile insurance rates to rocket, and they may not come down for years. Some companies even have monitoring devices that can be attached to the car so that a teen can prove that he or she is a cautious driver. These monitoring devices can significantly reduce rates for careful, proficient drivers.
Get the Scoop
Although most teenagers think they are good drivers because Mom or Dad taught them the rules of the road, most could use a bit more instruction. Many insurance companies give lower rates to students who have had a safe drivers course taught by a certified professional. These are quite affordable, and the money spent is easily recouped.
Getting a drivers license should be exciting, and teens and parents should not have to dig into college savings just to afford automobile insurance. They should use comparison websites and research the discounts offered by each insurance agency before buying a policy. They should take these figures to the insurance company that they prefer, and ask the agent there about the best way to save money if they decide to purchase automobile insurance for their teen from this company. Most will give honest answers if they are asked because they want new business.
Claire writes for http://www.kanetix.ca/calgary-car-insurance-ab which is an insurance comparison website.
