Having new driver in the family can be cause for both pride and fear. It is never easy letting your baby go out onto the open road without your loving hand to guide their way. It can also be terrifying to see what your new little driver has done to your auto insurance costs! Knowing how to insure your teen driver without blowing the bank may be one of your top priorities right now. The good news is, that if you simply look hard enough, you can find ways to cut the cost of your auto insurance enough to make a significant difference.
Here are some tips to help you and your new driver save money:
Tip 1: If you raise your collision and comprehensive deductibles to at least one thousand dollars your premiums will go down. This may make things more risky for you financially speaking, but to balance out the risk you can add an emergency fund account to your other bank accounts in case of an accident.
Tip 2: Even though your child wants that really cool car their best friend has, if you go with a simple and safe vehicle your rates will not go up as much. So not only will you feel better about them driving, but the insurance companies will too. This is a great way to avoid being charged an arm and a leg to insure your teen.
Tip 3: If the car that is insured is older and not even worth the deductible, drop your comprehensive and collision coverage completely. Even if the car gets totaled you may still be paying more premiums to your insurance company than the car was ever worth in the first place.
Tip 4: If you have been riding your teenagers back to get good grades, now is the time to pump up the pressure. Teen drivers who have good grades are eligible for discounted car insurance rates with some companies. In fact, many companies offer huge discounts to teen drivers who have at least a 3.0 GPA, make the dean’s list or stay on the honor roll throughout high school and college. However, if their grades go down your insurance goes up so make sure that homework gets done before bedtime!
Tip 5: If you teenager is college bound, let the insurance company know ahead of time. If they are going to be over 100 miles from home without a car, you can get a huge price cut while still keeping them insured for when they come home to visit.
Tip 6: Ask your insurer about teen discounts. Some of them offer price cuts if your child will take a driving safety class (and of course, pass it). This is one of those things that you will have to ask about though as the insurance company may not offer the information.
Tip 7: Combine all your insurance coverage to one company. Sometimes if you put your auto, life and home insurance with one company, they will give you discounts that allow you to have you child on your policy without paying thousands of dollars extra each year.
If you follow these tips you have a great chance of getting cheap car insurance in California when your teenager begins drive. Even with a good deal in place, this is a good time to promote their maturity. Try making an agreement with them to pay half of their part of the insurance costs while they pay the other half. This can be a great motivating factor to get them to a more responsible place in their lives and make your life easier!
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