There’s a secret among the ranks of auto insurance providers that you might not be aware of. Okay, it’s not really a secret—at least not by definition. Because something is not commonly known doesn’t automatically mean that someone (i.e., your car insurance provider) is trying to keep it hidden from you. But the fact that so few parents actually know there are steps they can take to lower the cost of their teenager’s car insurance certainly makes it seem that way. Here are two effective ways to accomplish that end.
- Raise your deductibles. You’re probably thinking it makes a lot more sense to keep your deductibles low, especially during your teenager’s formative driving years, to cover for the high risk of incidental damage. But raising your deductible can have a seriously diminishing effect on the insurance premium that you pay out, and could work to counterbalance the strain of taking a teenager onto your family policy. As a rule of thumb, you should never raise your deductible so high that you won’t be able to pay it if something does happen.
- Insist on a used car for your teenage driver. New cars cost a lot more to insure, and when you throw a young driver into the mix, you’ve got a financially crushing combination. A used car will help lighten the economic load and will also go a long way in teaching a teenage driver a few lessons in humility, as well as the value of the dollar. That said, it’s critical to your child’s safety that the used vehicle is equipped with all the necessary safety features. The last thing you want to do is compromise your teenager’s safety for the sake of a few saved dollars.