Ways To Keep Your Auto Insurance Low If You're A New Driver

Insurance Blog

If you have a teenage child who is about to begin driving, you may want to do all you can to ensure that your teen's auto insurance coverage is affordable. While there are steps you can take to help with this, there are also steps your teen can take to keep the rates as low as possible. New drivers are considered high-risk drivers to insurance companies, but there are several things you and your teen can do to help keep the rates low.

Things You Can Do as a Parent

As a parent, there are a few things to consider that may help keep the rates low on your teen's auto insurance coverage. Here are some of the top things to consider:

• Choose the car wisely – Older cars will typically cost less to insure, primarily because they are worth less. You may also want to choose a car that has great safety ratings. Both of these factors can reduce the costs of an auto insurance policy.
• Add the car to your policy – Insurance companies refer to this as bundling. Bundling is when you combine all your insurance needs into one policy. You can get discounts by doing this, which means you will pay less for your teen's coverage if you bundle.
• Install driving-monitoring software -This type of software monitors a person's driving habits over a course of time. If your insurance company offers discounts by using one, you should consider getting one installed.

You can talk to an insurance agent to learn about other types of discounts and ways to save money on your policy. For example, the agent may suggest sending your child to driving school. This teaches kids how to drive safely, and it usually results in a discount on auto insurance.

Things Your Teen Can Do

Your teen child can also take part in helping to keep the rates low, and there are several things you may want to discuss with him or her when it comes to this subject. Here are a few things you should talk to your teen about:

• Get good grades – A lot of insurance companies give discounts to young drivers if they have good grades and can prove it. Kids with good grades are statistically safer drivers, which means you should encourage your child to do well in school.
• Drive safely – You should also encourage your child to develop safe-driving habits. You can do this by teaching your child the rules of the road, and you might want to set rules when it comes to where he or she can drive. You could also put limits on the mileage your teen drives, and this might result in a low-mileage discount.
• Avoid distractions while driving – Teaching your child how to avoid distractions is another good step to take. Common distractions to teens include texting, talking on the phone, talking to friends, and having the radio blaring. If you can set rules about these things, your teen may become a safe driver. Safe driving habits over time will also result in discounts on policies.

There are many ways you can help your child learn how to drive responsibly, and this could help your teen have lower rates on auto insurance and help your teen stay safe while driving. Setting up rules and enforcing them is a great way to do this, and you should start these as soon as he or she begins driving.

With the right steps, you will not have to pay an arm and a leg for teen auto insurance coverage. If you would like more information about rates for teen drivers, contact an auto insurance company, such as LA Insurance, today. 

1 September 2017