8 ways to save with a teen driver
8 Ways to Save With a Teen Driver
In my other life, I supervise student teachers for the University of Idaho. Often, I am going or coming during lunch, before, or after school. As I see the cavalcade of vehicles pouring out or into the parking lot, I often think of parents and teens who are working to pay insurance rates. This blog details how to save on insurance, while still protecting your assets. To review why teens pay more, read Why teens pay More for Car Insurance.
Are you covered properly?
Let’s first think about why we have insurance. It is to protect our assets in the event of an accident of either your fault or that of another driver. First and foremost, you should review your policy to make sure you have adequate coverage. Confused about the verbiage? Here is a primer of terms that you might find helpful. Nothing is worse than not having adequate coverage and putting your life savings at risk.
Saving on your Insurance with a Teen Driver
1.) Use an Independent Agent to Comparison Shop
With so much competition between carriers it is important to shop for the company that fits you. An independent agent works for you, and is trained to provide the correct coverage for the best price, at no cost to you! Insurance is an important purchase, and when you need to use it, is invaluable. A barely trained phone person does not have your best interests at mind, but we do.
2.) Seek Discounts for Teen Drivers
- Having good grades-This pays off in so many ways, including a discount on your auto insurance! Think about keeping those grades up!
- Low annual mileage- some companies will discount for limited mileage.
- Drivers Safety class- many companies will discount for passing this class, plus it provides good practice, and another teacher other than you.
3.) Keep them on your Policy
It is usually cheaper to add a teen as an additional driver to your existing policy.
4.) Choose that car wisely!
When it comes time to choose that first car, consider how much it will be to insure. Try to opt for a model with a strong safety record and equipment. We consul our clients to give us a call to get an estimate of the premiums before purchase.
5.) Stress Safe Driving
Be a good role model-our children watch us! it goes without saying, but when we drive distracted or aggressively, it does not engender good habits in our children.
6.) Have a conversation. We have found having a conversation with a tool such as our young driver contract helps all stakeholders to have a conversation about driving privileges.
7.) Look at Deductibles and Coverage
Just remember as my old economics teacher used to say,” rate equals risk”. You can choose to raise your deductibles and save some money, but if you need your insurance, you must pay more out of your pocket. If your teen’s car is the old hand me down, you might think about dropping comprehensive coverage. We can help you with this decision.
8.) Other Discounts
At jan jesberger insurance we know what combination of discounts and carriers provide the best value. Some of the discounts we will help you find are:
- Multiple Car- Having several vehicles on the same policy can reduce your rates.
- Bundling- You can often save by bundling your homeowners and car insurance policies- but not always. We have an excellent home insurance carrier for just Idaho homes, Gem State Insurance that takes advantage of our low exposure in Idaho, and exploits this niche providing home insurance (only risk they write), so even though we cannot bundle with them, their standalone policy is often the best choice paired with the correct auto insurer.
- Safe Vehicle- The more safety features, the better the price.
The bottom line is to make sure that the lines of communication are kept open between you, your new driver and your insurance agent. Having conversations about safe driving habits, clearly defined rules, and an eye on type of car can keep your premiums to a minimum, while protecting your assets. At jan jesberger insurance, we have all been there, or are there now, with new drivers. Give us a call today at 208-762-2122 and start sleeping better at night, knowing you are correctly covered for the best price.