Save on insurance for teenage drivers

Getting a drivers license is one of the rites of passage for most teenagers in the United States, and insurance companies are well aware of the risks that these inexperienced drivers pose. For parents, adding a teenage son or daughter onto their insurance policies can be a big hit to the wallet. The Insurance Information Institute estimates that adding a young driver can increase rates by 50 to 100 percent. It may be tempting to just take away the keys, but before you do that, read on for some ways to keep younger drivers safe on the road, while reducing the costs for auto insurance.

Maintain a Clean Driving Record

One of the things that can cause insurance premiums to go through the roof is to have a DUI conviction. Driving while under the influence of alcohol can be extremely costly – in New Jersey, for instance, the total cost for one DUI for an underage drinker can run up to $24,000 (source: Municipal Alliance for the Prevention of Substance Abuse). This includes increased insurance premiums, legal fees, and other fines. A young person with no previous convictions who is convicted of a DUI could face insurance premiums raised to thousands of dollars for at least three years, according to David Snyder of the American Insurance Association.

In addition, simple steps like always using a seatbelt and driving close to the speed limit can greatly reduce the chances of having a moving violation on the record of a young driver.

Keep Your Grades Up

Many insurance companies offer discounts for students who maintain a 3.0 or B average and who are enrolled full time in high school, community college or university.

Taking a local accredited driver safety class may also lead to a discount, or help to remove points from a young driver’s license after an accident or violation. Check with the National Safety Council for information on where to take a driver safety course. They can also provide information regarding state certified programs that offer courses for point reduction, car insurance discounts, drivers education classes, or retraining.

There are many drivers education companies which offer comprehensive training that can provide courses in defensive driving. These can help to bring down premiums for auto insurance.

Be Involved in your Community

Some insurance companies offer discounts for young drivers who are a part of civic or community organizations, such as Scouting, or even for volunteering at a local hospital or nursing home. Insurance companies are looking for evidence that a young driver is less of a risk, and many are willing to reward those who have spent time bettering their community. When doing comparison shopping, ask to find companies that reward community involvement.

Choose Your Car Wisely

Driving the newest sportscar may be a dream of younger drivers, but it’s probably not the best way to minimize insurance costs. The type of car driven is a large factor in determining how much premiums will be.

Choosing a safer car can save up to 50 percent on auto insurance. SUVs, sports cars, expensive luxury cars, and high performance cars are considered to be higher risk by insurance companies, and you’re going to pay more to insure them.

While it may seem to be “uncool”, younger drivers may want to consider driving a less glamorous, but safer car. A Honda Civic or a Volvo will usually have lower insurance rates than a sports car. Older cars may not have airbags, and that will also raise rates. Consumer Reports also has some recommendations for young drivers, including the Toyota Camry LE and the Mazda3.

Benefits of Safety Features

Insurance rates are also often discounted for cars with added safety features, such as automatic seat belts and anti-lock breaks. Side-impact airbags may also help. Stability control features may also taken into account when insurance companies determine risk.

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