Understanding Insurance Terminology

Understanding Insurance Terminology

Tips To Save Cash On Auto Insurance Coverage When You Have A Teenager

by Vilma Maki

If you have a teenager who is about to get their driver's license, he or she is likely very excited about the road ahead, and you're probably excited for them. But, if you're like most parents, you are also concerned about your kid staying safe on the road and probably wondering what kind of financial hit adding a teen to your auto insurance policy is going to bring. Here are some tips that might help you save some money on your auto insurance coverage once your teen child comes aboard.

Send Your Teen to Driving School

Auto insurance companies are leery of teenagers because they don't have much experience behind the wheel, and teens, in general, are sometimes known for taking risks. If you want to allay some of those fears and see a clear difference in your premium as a result, your teen and your wallet will benefit if you send your kid to driving school. Getting an official education behind the wheel for your teen will make everyone in this situation feel better.

A 16-Year-Old Doesn't Need a Sports Car

Some families use the occasion of a teen getting their driver's license to spring for a new car. Teenagers, in general, are also likely inclined to want the coolest or fastest car they can get. But, the newer, faster, and "cooler" a car is, the more it will likely cost to insure.

Explain to your teen that they don't need a sports car, and get them a more sensible four-door sedan with good gas mileage. Hopefully, your teen should be grateful for getting any kind of car from you at all. In short, the more "boring" your teen thinks the car is, the better. "Boring" and older cars tend to come with much lower insurance rates.

Ask for a Low Mileage Discount

Some insurance companies are willing to work with you on the premium if a driver on your policy will only be using the vehicle in a limited fashion. If your teen isn't allowed to drive the car to school every day and can only use it sparingly on the weekends, you might qualify for a low mileage discount. While you're on the phone, ask about any other options available to you.

Adding a teen to your auto insurance policy doesn't have to cause your insurance premium to skyrocket. Sure, it is going to go up, but if you're smart about it, you can get your teen on the road without draining your bank account. Contact your auto insurance coverage provider today for more information.


About Me

Understanding Insurance Terminology

After we purchased our first home, we realized that it might be a good idea to evaluate our insurance coverage. Although we had purchased homeowners insurance before, we had never owned a policy as large as the one we would need for our new place. Also, our new home had a trampoline and a swimming pool, which made us worried about liability. To iron out the details, I decided to meet with our insurance agent. We talked about things like monthly premiums, coverage limits, and deductibles, and it was incredible to learn more about the terminology. This blog is designed to help you with the same types of questions.