While most teens want to
strike out on their own, it's a tendency they should resist when it comes to car
At high risk for traffic accidents and tickets,
their rates can easily be 50 percent to 75 percent higher than older drivers',
with a reduction not coming until age 25, marriage or both. They'll save money
and headaches by getting their insurance as an addition to their parents' insurance
policy instead of getting their own policy.
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Here are some ways
to reduce the cost, courtesy of the Independent Insurance Agents of America:
sure your teen stays in school and studies hard. Some insurers offer discounts
to good students, or to those who only drive during school vacations. A "B"
average or better in school carries a lot of weight in keeping insurance costs
Sign up your teen for a driver's education course.
Many insurers will offer a discount for this kind of investment.
your teen will be driving a family car, designate one vehicle he or she will drive.
Otherwise, the insurance company will price the premium based on the highest risk
vehicle on your policy.
Consider a higher deductible. Going
from a $250 to $500 or $1,000 deductible can save you 10 percent to 20 percent
on your premium. What you have to weigh is whether you can absorb the out-of-pocket
expense in the event of an accident.
Reward safe driving.
More than anything else, an accident- and ticket-free driving record will keep
your rates at their lowest.