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Auto Insurance and Your Teen Driver: 3 Ways to Save Money (and Your Mind)

By on August 18, 2011 in Auto Insurance, Insurance

As a parent, there will come a time when you will have a teenage driver. While even the thought may frighten you, when you find out how much your auto insurance bill goes up when you add a teenage driver to one or more of your vehicles, your heart may really skip a beat. The trick is to pay as little as possible in auto insurance but still carry the coverage you need. Fortunately, there are at least three ways you can insure your teenage driver and shave money off your insurance bill. You’ll need to talk with your insurance agent to see which options are available to you through your policy.

Certified Driving Program

You have the option of teaching your child to drive or allowing them to take a driver’s education course through school. You can also take it up a notch by enrolling your teenager in a certified driving program. When your teenager satisfactorily completes the course, they receive a certificate. Presenting this certificate to your insurance agent may mean a discount on your auto insurance bill. You can talk with your agent ahead of time to see if they offer a discount, but it may be a good course for your teen to learn proper and safe driving techniques.

Parents of Good Students Get Rewarded

If your teen makes good grades, you may have more of an advantage than your pride. Most of the major insurance companies offer a discounted rate when your teen holds a minimum grade point average. Be prepared to prove the GPA of your with report cards or records from the school, but it’s worth the effort because it can save you anywhere from 10% to 20% off your bill.

Choose a Car Wisely

The make and model of the vehicle you insure your teen to drive also has a huge affect on your auto insurance rates. Try to choose a vehicle that offers the safety features and other options that can help you reduce the premium you pay on the car.

Some options include:

  • Air bags
  • Anti-lock brakes
  • Alarm system

While your teen may be excited to get their license and get behind the wheel, your excitement may wane quickly when you see how much your insurance bill is going to increase. Talk with your auto insurance agent about any and all discounts you may be able to take advantage of to keep your bill at a reasonable level.

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