Adding a teenage driver to your policy could cost more than many unsuspecting parents realize. In some states, a rate can increase as much as 227% after adding a teen to an existing policy. While the cost will be much larger than adding an adult due to the inexperience of teen drivers, there are some ways to cut down on some of the costs.
Discounts for Teen or First Time Drivers
- Good Student. For students with a GPA of 3.0 or above, or rank in the top 20 percent of their class, they could save anywhere from 5 to 25% on their insurance, depending on the company.
- Driving Training Program. There are options in driving school and defensive driving classes that can save your teen between 5 and 15 percent on their insurance rates. Some insurance companies feel the driver’s education courses are part of the licensing process, but most give a good discount for defensive driving.
- Low Mileage. If your teen only drives to school and back, or only runs errands, they could save big. These discounts start at 10,000 miles, but those that drive 7,000 or 5,000 annually could have huge savings.
- Special Programs. Some insurance companies have their own programs set up for discounts. If your teen completes one of these programs, they could get a chunk cut out of their policy. These discounts vary highly from company to company.
- Family Plan. Adding your teen driver to your plan could save on their premium through a family plan.
- Student Away. If your child will be attending college more than 100 miles away and won’t be taking a car, they can get a significant discount since they won’t be driving. The discount can range between 5 and 35% off.
- Car Monitors. Pay as you drive programs could be the best bet for a responsible teen driver that doesn’t use the car much. It tracks miles driven, braking, speed, and time of day to give significantly discounted rates.
Getting their first license and car should be an exciting time for a teen. Contact an ABCO agent today to shop around the different insurance companies and find out what discounts can work in your teen’s favor today!