4 Teenager Insurance Tips

Since our oldest just turn 16, we have been reading articles about teenager insurance.  Here is a blog we thought we should share from insurancequoteauto.info.

Car insurance for teens is expensive because teen drivers represent a huge risk for car insurance companies. Car crashes are the leading cause of death for U.S. drivers ages 16 to 19, and drivers in that age group are nearly three times as likely as those ages 20 or older to be in a fatal crash, according to the Insurance Institute for Highway Safety’s Highway Loss Data Institute.

Tips:

  1. Get good grades. Good student discounts can range from 10% to 25%, depending on the insurance company and state.
  2. Take a professional training course. Insurers may offer discounts of up to 10% for drivers under 21 who complete an approved driving education course.
  3. Leave the car at home. Many insurers offer teen drivers a discount if they’re attending school at least 100 miles away from home and leave their car behind.
  4. Sign a driving contract. Some companies provide discounts or benefits for teens who sign a driving contract in which they promise to always wear a seatbelt, never text or eat while driving, call for a ride if impaired, pay any traffic or parking tickets, maintain good grades and contribute to the cost of car maintenance, gas and insurance. Discounts vary by state and insurance company.

It’s really important for teen drivers to compare prices from different insurance companies and look for discounts. For example, the following companies provide these discounts:

Nationwide:

Up to 15% discount for drivers ages 16 to 24 with a B average or better
Under the company’s Family Plan, relatives living in the same household can all share discounts

American Family insurance:

Good student discount available; percentages vary
Discount for drivers younger than 24 who attend school more than 100 miles away from home and leave their vehicles behind

State Farm:

Up to 25% discount for good students
Up to 15% discount for teen drivers who go at least three years with no tickets or at-fault accidents and complete an approved safety course

Geico:

Up to 15% discount for good students
Additional discounts available for car safety features
Teen drivers can also buy their own insurance policies, rather than being covered under their families’ plans. Teens can save by getting auto coverage on their parents’ policy. It costs teens and their families $3,053 less per year, on average, to be covered under a single car insurance policy than it does for teens to buy their own coverage.

 

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