Saving Money on Teen Car Insurance

Many car insurance companies consider drivers under the age of 25 a higher-than-average risk for vehicle-related accidents. This high risk of teen accident and death can skyrocket your insurance rates 50 to 100 percent, says Jeanne Salvatore of the Insurance Information Institute (III), and often translates into high teen car insurance premiums.

But wait—don't take away your teenager's car keys just yet. You can save money and afford that teen car insurance you need…if your teen expends some effort and follows these guidelines:

1. Keep a Clean Driving Record — Just one DWI conviction can raise teen car insurance premiums from a base premium of a few hundred dollars to thousands of dollars annually for at least three years. Sometimes as little as one ticket early on can increase you insurance cost two or three times what it was, so don’t get daring and don’t speed or take unnecessary chances behind the wheel.
   
2. Get on the Honor Roll and stay there –students who maintain a B average or better are offered lower rates by most insurers Insurance agents also offer discounts to those taking a locally accredited driver safety course or other state-certified programs. (Ask your agent about these discounts, or get online information from the National Safety Council.)
   
3. Involve Yourself in Your Community — Young people who join certain civic or community organizations such as Eagle Scouts or Girl Scouts may receive discounts from their teen car insurance providers, says David Champion of Consumer Reports. These companies are trying to find the least risky teens, so they often reward time spent bettering your community with discounts, Champion adds.
   
4. Choose a Safer Car — Teen car insurance may cost up to 50 percent less if your teen drives a safer car such as a Honda Civic or a Volvo, according to Champion. Newer model cars with airbags are the least expensive to insure—and the safest for your teen to drive. Sports cars, expensive cars, high-performance cars and SUVs carry higher risk and higher teen car insurance premiums. Driving an older vehicle that is loaded with safety features helps keep rates down. If the vehicle you are driving doesn’t have automatic seat belts, that is no excuse for not using them. The higher the horsepower the higher the premiums generally speaking. It is also true that vehicles with low safety ratings, high theft rates, or high rates of vandalism usually carry a higher insurance premium. If you need to use the cell phone pull off the road first. 
   
5. Added Safety Features — Safety features such as anti-lock brakes, traction control, automatic seat belts and side-impact air bags can reduce teen car insurance rates considerably.
   
6. Compare Policies and Rates Carefully – Rates vary greatly from one company to the next. It is usually less expensive to be on your parents policy than to try and get one of your own if you are not yet 21.

Driving is a privilege your teenager should respect, so lay down some ground rules before he or she gets ever gets into the driver's seat!

By laying down a few ground rules, you can help your teen approach the wheel with a mature attitude—yielding the valuable driving experience needed to get the lowest rates for teen car insurance.

See the Free Parent / Teen Driving contract on the MyTeen website

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Resources: Insureme.com

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