Insurance Basics: Everything You Need to Know

Finding Auto Insurance Discounts for Your Teen Driver

If you have a teenager that is about to reach the age of driving, you're about to go through a whole world of changes. Not only will you have to accept the fact that your teen is growing up and is one step closer to leaving the nest, but you'll have the extra expenses of having a teen driver on your auto insurance policy. What can you do to keep the cost of insuring your teen driver to a minimum? Here, you'll find a few tips to help you do just that.

Student Discounts

Some insurance companies offer discounts for students that maintain a certain GPA. In some cases, you'll be asked to present the most recent report card to the agency, but most of the time, the insurance provider will take your word when you open the policy, so if you don't have easy access to those documents, it's probably not going to be a big deal.

Driving School

Has your teen taken any kind of driver's safety courses—behind the wheel or in a classroom? There are discounts for drivers to take different driving classes. Some insurance providers offer different levels of discounts for the type of classes that are completed, while others provide a blanket discount for anyone that has taken a driver's safety course of any kind.

Additional Vehicles

You will see a significant jump in your insurance premiums when you add a teenage driver, as well as another vehicle. To keep your premiums low, share your existing vehicles with your teenager. If you do decide to move forward and get your teen a car of his or her own, make sure that you find a car with all of the best safety features—this will offer the best discounts on insurance. Steer clear of the sports cars, convertibles, and luxury vehicles—they cost more to insure than the good old reliable family sedan.

Payment Options

Sometimes, if you pay your premiums in full at the beginning of the policy period, you'll get a discount for doing so. So, if your policy renews every 6 months and you pay for that 6 months' worth of premiums, you'll receive a discount on the overall cost of the policy.

If you opt for monthly payments, you may be able to get a discount for having the payment directly withdrawn from your checking account automatically each month.

Talk with your auto insurance agent to learn more about discounts available when you add your teen driver to the policy.