When is the Right Time to get Car Insurance for a Teenager?

Getting car insurance for a teenager is not a task any parent relishes because of the enormous costs involved, but buying it sooner than later is always the best option. As soon as your child gets his learner’s permit and starts driving your car, you should talk to your auto insurance company about adding him to your policy. This will make sure you are covered should anything go wrong during those dreaded driving lessons. Once your child gets his permanent driver’s license, you should contact your insurer again to have the policy updated accordingly.

Insuring a teen driver costs a pretty penny because drivers between the ages of 16 and 24 have the highest levels of at-fault accidents. Whether you add your teenager to your existing car insurance policy or purchase one in her name, you can expect to pay a lot more. There are some strategies, however, that can help you save money on your premiums when you do decide to insure your child including:

Tying driving privileges to school performance. Most auto insurers will give a discount of 10% to 25% to teenagers who keep their grades at or above a B average. Waiting to get your child a car until his grades are satisfactory can save you money and provide added motivation to do well in school.

Taking advantage of more driver’s education. Many auto insurers will provide additional discounts of up to 15% for drivers who take additional driver’s ed classes and have more hours of supervised driving. Laws vary by state for what is required to get a driver’s license, but you can seek out more instruction for your child independently. Not only can this save you on your premiums, it can also help you prevent needing to cash in on the insurance by extending the learning process and producing a better driver.

Adding your child onto your existing auto insurance policy. This will usually allow you to afford more coverage for your child than if you were to buy a separate policy, particularly if you are benefiting from discounts like safe-driver discounts or multi-policy discounts. Additionally, if you are getting a car for your child to drive, this could qualify you for multiple-car discount. This may not be a good option if you have a very expensive car on your policy, however.

Increasing your deductibles. Having a higher deductible will lower your premiums and can help offset part of the added cost of putting your teenager on your auto insurance policy. In the event that your child has an accident, you will have to pay more out-of-pocket, however. Of course, you could always pass that expense off to your teenager.

If you are thinking about buying a car for your child, talk to your auto insurance company beforehand to see how much it will cost to insure that car. Buying a car with less value will usually save you on your premiums. No matter what, you are going to end up paying more when it’s time to insure your teenager, but some planning can help you keep costs as low as possible.