How To Save On Teen Auto Insurance – Some Secrets Unveiled
If you are like most parents, you will be anticipating the birthday of your teen when hebecomes eligible for a road test with a mix of happiness and trepidation. Happiness, because you no longer have to act as an unpaid driver and he can travel wherever he likes and even help out the family by running errands. You will also be dreading this day because even though you don’t know what the increase in your family policy will be, you are certain that it will be by a whopping amount.
A Huge Jump in the Premium
While the addition of a driver in the family can be immensely liberating, there is a substantial cost attached. According to an Insurancequotes.com report, you can expect the addition of a teen driver to the family policy to hike the premium by 79% on an average. If your teen is a boy, then the premium can rise by 92%, while for a girl, the rise is 67%. Also, the place where you live can make a big difference; the premium can double in states like Maine, New Hampshire, and Rhode Island while for Michigan and New York, the rise comparatively seems almost reasonable at 55%. However, there are some steps that most people forget to take that can ease this pain:
Let the Driving Behavior Be Tracked By the Insurer
Many of the larger car insurance companies have programs that can use a combination of hardware, software, and telematics to get a steady stream of information on how the car is being driven; speed, time of the day, and even acceleration and braking rates. The Snapshot program of Progressive, for example, involves fitting a tiny device to the steering column of the car which then transmits the data back to the company. The OnStar program by StateFarm is quite similar, but Allstate’s Drivewise is more sophisticated. Implemented as a stand-alone electronic device or a smartphone app, the program collects data on parameters like speed, miles covered, braking frequency and intensity, and the time of the day the car is being driven, which then can be taken into account to save you money.
Good Grades and Other Applicable Discounts
Many people do not know that almost all insurers offer teen drivers a discount for maintaining good grades.You have to specifically ask your insurer to give it to you by giving them proof of your academic performance. There is a fair bit of variance in the allowable discount by the state as well as the insurer; AllState gives as much as 20% off but you can averagely expect at least a 10% discount on the premium. You need to have at least an average of B grade to qualify. Ask your insurer for other discounts they allow; for instance, Liberty Mutual offers discounts to those participating in driver safety programs as well as for executing a safe driver agreement with your teen.
Let Your Teen Drive Lower-Value Cars
It is well-known that teens present a higher risk to car insurers because of their temperament and driving styles. Insurance companies like it better when teen are behind the wheels of cars that are safer and especially less in value, because the risk exposure automatically comes down, in the case of an accident. Having two old cars in the family garage can be substantially less expensive than two new cars, as far as the insurance premium is concerned.
Inform the Insurance Company When You Are Away From Home
According to statistics, the majority of students do not have cars on the campus. If your teen does not take his car to the college, you can ask for a ‘distant driver’ discount that is typically made available when the driver is at least 100 miles away from home.