If your child is reaching the age where he or she can receive his or her license, you may be slightly stressed about the additional costs that come with insuring them. After all, your teen cannot legally drive on the road without having insurance, especially if they are going to have their own vehicle. Here are four ways to help lower the car insurance rates while still guaranteeing that they are legally able to drive on the road:
- Choose an Older, But Safe Vehicle: If you are going to buy your teen driver a car, it should be an older car that still has great safety ratings. Insuring an older car is always more affordable. On top of this, if it has great safety features, such as airbags, it's going to lower insurance costs even more. Be sure that you assign this vehicle to your teen driver through your auto insurance. This way, you are paying the cheapest rate possible to add your teen onto your current insurance policy.
- Consider Insurance Based on Usage: For your teen driver, it may be ideal to choose insurance that is based on usage. Of course, this is only ideal if your teen doesn't drive very often. If they are only going to be using the car to get to and from school, for example, then you could save a ton by choosing insurance based on usage. Your insurance company will install a device on the vehicle that will track mileage, as well as driving habits, such as slow braking.
- Wait to License Your Teen: Although your teen may be eager to get behind the wheel, if you can convince them to wait at least a year before getting their permit, you can save a great deal of money on insurance. This is because teens under the age of 18 are going to have much higher insurance rates. Attempt to convince your teen that the limits on their driving before the age of 18 won't even be worth it.
- Take Advantage of Discounts: If your teen is insuranced while still in high school, be sure to have them print out their grades. Students with a 3.0 GPA or higher often receive a heavy discount. This is also true once they are in college.
When you know these four ways to lower the car insurance rates for your teen driver, you can be sure that your family is not changing your financial state dramatically once they are insured.
For more information, contact local professionals like Allstar Insurance.