Adding a teenage driver to your car insurance policy is known to be a cause of the premium increase. Because more teenagers start to learn to drive, more household gets the financial shock that comes along with it. Fortunately somehow, the increase in premium rate has been gradually falling, hence, it’s becoming less shocking.
One teenager added to auto insurance is equivalent to 78% premium increase, at an average. This is approximately $670 more. Although it’s still a lot of money, it’s lesser compared to the 85% increase back in 2013.
Below are some tips to consider when adding a teenage driver to your car insurance policy.
Reducing the cost
While it’s not a guarantee for safe driving, some insurance providers offer discounts to teenage drivers with good grades. This way, students don’t lose focus on school while they get excited being licensed on the road. Additionally, discounted premium rates are also made available for those who take educational driving lessons.
Yet, the most effective way of reducing claims and holding costs down is for parents to spend more time with their children behind the wheels. Setting of rules and coaching them even after getting licensed should be among the priorities.
Safer car models
The IIHS or Insurance Institute for Highway Safety publishes the list of car models that are safer and more affordable for teenage drivers. Generally, vehicles that are larger and heavier are the best models for young drivers to bring on the road. Likewise, a pre-owned vehicle is more advisable to buy than a brand new one.
Using helpful apps
Technology is constantly emerging. With this, the invention of various applications that disable texting has been introduced. Restricting the use of social media has also been a big help in making sure the driver’s focus is on the road.