5 Ways To Manage Costs On Teen Car Insurance

Posted on: 4 March 2016

Teen car insurance can be a tricky thing. Some companies will charge a lot more for teen drivers, since their inexperience may make them more prone to accidents. But there are still things that you can do to protect your teen's coverage while keeping costs low.

Beef Up the Report Card

The first thing to consider is whether your chosen company has any kind of discounts for teen drivers. Some companies will look at the teen's GPA in order to award discounts to responsible students.

Seek Out Driver Training

Another potential discount is a Good Driver program, which rewards people that have gone through a formal driver's education program. Not only will this make your teen safer on the road, but it can lead to reduced insurance rates.

Give them Increasing Responsibility

You can manage your insurance costs by breaking your teen in gradually to the responsibilities of driving and using a car. For instance, you may start by including your teen on your own car's insurance plan as an additional driver, and making sure that they handle the privilege responsibly. Once you can see that your teen driver is safe on the road, then it's time to consider getting them their own car and insurance plan.

Choose a Used Car

For new drivers, there are several benefits of having a used car. For one, the used car may not have as high of a resale value, so a few extra dings on the surface might not make as much of a difference as if your teen put dents in a more expensive car. But the second benefit is that older cars tend to have lower insurance rates, so you can balance out the higher premiums of insuring a new teen driver. Used Nissans (available from companies like Western Avenue Nissan) are a great starting car for teen drivers to help balance cost and safety. 

Consider Your Coverage Options

Finally, when insuring a teen driver, be sure to evaluate the different parts of your insurance plan carefully. You may want to disavow such benefits as minor collision and detail coverage. Another thing to consider is whether you want a high or low deductible. With a low deductible you'll be able to get coverage on those minor repairs, but a higher deductible can make the monthly premiums come down considerably.

In short, finding the right car insurance coverage for a new teen driver depends both on educating your teen about safe driving and educating yourself about potential discounts. With the right company, you can maximize your teen's safety and coverage while keeping costs low at the same time.  


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