You see them everywhere-ads that promise you the moon, the stars and the best possible deal on your auto insurance. If you're the parent of a teen driver you probably laugh a little every time you see one of these signs, knowing that putting your teenager out on the road killed every chance you had of getting cheap auto insurance. Or did it? You might be surprised to find out how (relatively) cheap insurance for your teen can be.
You don't have to look too hard to find the reason your insurance provider is so skeptical when it comes to issuing your teen driver an insurance policy. Statistically speaking, teen drivers are the single most likely driver group in the world to be involved in an accident. Studies show that teens, who make up less than 15% of the U.S. population, account for 30% or more of auto insurance claims filed every year-a number that adds up to over $19 billion dollars in damages paid out by insurance companies.
Do you remember how much you complained when they finger painted on your television screen in nail polish and you had to replace the entire set after finding out nail polish remover can do irreparable damage to electronics? These numbers are much, much worse.
The good news is, there ARE some ways you can keep your teen's premiums down. What are they driving? Are they cruising around town in the family sedan or your $50,000 Porsche, or did they manage to find a beat up, second hand clunker that just barely gets them from here to there? Believe it or not, unless you have a teen going away to college (when dubious transportation capabilities are definitely a bad thing) the second hand clunker is probably your best bet.
Why is it a better idea to pick up a hunk of junk than a sleek, 2009 sports car for your teen? Aside from the obvious (the obvious being most teenagers' natural need to find out how much power they have under the hood the minute they hit the interstate) there's also the matter of replacement cost. If you're insuring a $15,000 vehicle it's going to cost you more to carry the comprehensive and collision coverage you really want your teen to have. On the other hand, if your teen's car's Blue Book value is just barely clearing $3,000 (or less) your auto insurance provider is going to be more than willing to give you a great deal on your coverage.
Next, let's talk books. How hard is your teen hitting the books on their time off? For most auto insurance companies scoping out their drivers' credit scores is standard practice. Since your teen probably hasn't had time to build up sufficient credit (especially if they aren't old enough to be plagued by credit card offers yet) your car insurance company is going to judge their off-road responsibility using their grades. That means honor roll students are in a great position to save 10% or more on their auto insurance, so now might be an excellent time to start "recommending" some extra study time.
See? Cheap auto insurance for your teen driver isn't as far away as you might think. So the next time you're cruising down the road and you hear a commercial from someone promising to save you 20% or more on your auto insurance policy you can sit back and relax, knowing you're already there.
