Getting the Best Auto Insurance Rates for Teens

If your teenager is about to start driving, you're probably concerned about how much their insurance rates will be. Since teen drivers don't have a lot of experience on the road, they're more likely to get into accidents, and they present a major risk to insurance providers.

So what can you do to control costs? For starters, adding a teen driver to your current insurance policy will be much cheaper than buying them a separate policy. But an inexperienced driver can still lead your costs to skyrocket by $1,000 or more over the course of a year. Here are five steps you can take to reduce costs.

1. Research Good Grade Discounts

Studies have shown that students who have good grades are less likely to be involved in auto accidents when compared to students with bad grades. As a result, many insurance providers will offer a discount to teens who have a B average or better. You may save between 10% and 25%.

2. Get Them a Safer Car

Auto insurance rates are partially based on the safety statistics of the car you drive. Although many teens would prefer to drive a fast, sporty car, the safer the car, the cheaper it will be to insure. The Insurance Institute for Highway Safety Keeps can provide you with data on different models.

3. Make Them Take a Driver's Safety Course

Young drivers who take driver's safety or defensive driving courses may qualify for a discount. The course will probably need to be approved by your insurance provider, so contact them before your teen enrolls.

4. Encourage Responsible Driving Habits

Perhaps the most important step you can take is to encourage your teen to respect the rules of the road, so they can stay safe and avoid accidents. Even a minor accident can raise your insurance rates.

5. Shop Around for the Best Rates

Different insurance companies will have different rates for young drivers. Although one insurer may have offered the best coverage option for you and your spouse, you may need to switch to a different provider in order to make your policy affordable now that your teenager is driving.


Auto Insurance Quotes for Different Coverage Options

Before requesting auto insurance quotes, you should determine the type of coverage you need and how much coverage you can afford. Learn about coverage options and policy add-ons that can provide extra protection.

High-Risk Drivers

Auto Insurance Quotes for High-Risk Drivers

Certain drivers are required to pay more for coverage. Find out how you can still get competitive auto insurance quotes if you have been classified as a high-risk driver.

Credit Scores

Credit Scores and Auto Insurance Quotes

Insurers consider many factors when setting rates for coverage options. An important one that is often overlooked by drivers when getting auto insurance quotes is their credit score.