According to The Zebra, who took a close look at the state of car insurance this year, the average teen in the United States pays a little over five thousand a year for car insurance. One thing for certain-- the cost is high.
Car insurance for a teen driver can get expensive but there are ways to help ease some of those costs.
1. Shop around for an insurance company that offers some sort of academic discount. Many companies will lower your rate for students with a 3.0 or better. For a teen right on the cusp of that grade point average, being able to drive might be just the incentive needed to get the grades up.
2. Choosing an older car instead of a brand new one for your teen could save you cash. Of course, every teen dreams of driving a new luxury car off the lot but that can mean more expenses as well, including insurance. Finding a safe vehicle that you don’t need full coverage can make a big difference. Cut corners by not worrying about physical damage coverage.
3. Once your teen is behind the wheel remind them that any small accident can mean major increases in the cost of insurance. Talking to them about safe driving is critical. This includes making sure they put the phone down while driving, keep the music at a low, and maybe even limit how many riders they can have in their car at one time. By eliminating distractions, you're setting your teen up for a safer driving experience.
4. Lead by example. The saying, your child’s first classroom is at home rings true especially when it comes to safe driving. Make sure you are abiding by the law. Your teen is watching.
5. Bring your teen to the insurance agent with you. Sometimes hearing how important it is to drive safely is better heard from someone besides a parent. Plus local insurance agents will be able to show your teen how expensive insurance is and how often they see teens deal with accidents. Making them part of the adult conversation might help them understand just how big of a deal driving is.
6. Make them pay for their own insurance. It may seem a bit harsh, but nothing will make a teen understand just how their actions behind the wheel will affect insurance than making them pay it themselves.
The most important thing is to talk to your teens before they get behind the wheel. It could save their life and your money.