The words “cheap” and “car insurance” don’t usually go together in the same sentence for a 17-year-old or anyone under 25. The simple fact is that this age group has a higher incidence of car accidents and insurance claims than any other age group. That is not likely to change. That’s not to say that steps can’t be taken to help lower these insurance premiums. You are not only at the mercy of insurance providers. Here are some suggestions.
comparison shop – Just like the TV commercials say, you can save up to hundreds of dollars a year. The largest variation in insurance rates between age groups is with the 16 – 25 age group. Different providers have different methods of calculating premium rates for younger drivers. It’s worth looking around.
How to handle a teen’s policy – Should a teen’s policy be set up separately or become an insured driver on an existing policy? It is worth investigating which approach will be the most financially advantageous. The better a parent’s driving record, for example, the less expensive it would be to simply add the teen to that policy.
Check the old break – This applies to someone a little older than 17, but still good to know. At what age is a driver considered an adult? Many companies still use the age of 25, but others have changed to the age of 23. The lower rates should result in whatever age the insurance company considers a driver to be an adult.
choice of car – Vehicle makes and models have an impact on insurance premium rates. A 17-year-old may have a dream because he would love to drive, but he may very well have a price, and not just the cost of the vehicle. Older used vehicles can easily command much better premium rates due to better crash test scores and a lower chance of theft.
Registry – Will the car to be insured be registered in the name of the adolescent or the parent? It will probably be cheaper to keep it in the parents’ name.
assigned vehicle – How does your insurance provider handle a teen driver? Is the driver assigned to a specific car or insured to drive all vehicles under the policy? The cheapest rates are available when it is possible to assign a specific car. Of course, that means they are not insured to drive other family vehicles. If they did and they were in an accident, it could significantly increase your overall insurance rates.
Good grades – Maintaining a B average in school can qualify a student for a nice student discount. This can be as much as 5 – 10%.
driver education – It’s another way to get discounted insurance rates. Qualifying programs can earn up to a 15% discount. Some states even require driver education to get a license at age 16. Otherwise, it will not be available until the age of 18.