The best method for finding affordable car insurance rates for teens is to put them on the same policy as an established driver, typically their parents. This is a great trick in that the new driver benefits from the already established good driving history of their mom or dad. However, there are times when it's just not possible for the teen to take advantage of their parents' insurance policy. This may happen if the parents themselves have high insurance because of prior speeding fines or a collision. If this is indeed the case, the teenager will need to look for a policy of their own. Although they should be prepared to spend quite a bit in premiums every year, there are some things they can do to help make the cost somewhat more affordable.
New drivers should consider:
- Not buying their dream car for a few years. New cars cost more to insure than older cars. For a teen just starting out, the cost of the car plus the cost of insuring it can be astronomical. Buying an older car may mean that the teen does not need collision or comprehensive coverage, both of which are expensive.
- Only driving part-time. Many car insurance companies offer a discount for drivers who travel under a prescribed number of miles a year. If the teen is already taking public transportation back and forth to school, they can continue to do that and drive at other times. This discount can really help lower the teen's insurance costs over the course of the year.
In addition, every year that the teen stays accident and citation free, they are likely to see a drop in their insurance rates. Although it can be tempting to put the pedal to the metal and speed, the new driver should really consider the total cost of doing that. Not only will they face a speeding fine but they'll continue to pay higher and higher car insurance rates.