2 Ways You Could Temper The Sting Of Insurance Rates Because Of Your Teen Driver

24 July 2015 by Elijah Steward

When your teen reaches the age when they can finally get their driver's license, it can be a bittersweet moment as a parent for sure. On one hand, you will be excited to reach a new milestone and see your child become more self-reliant, meaning you will no longer have to be the chauffeur at all hours of the day and night. However, along with this new freedom comes a lot of worry on your part about your teen being a safe driver and how much your insurance rates may change.

According to a report by CNBC, adding a teen driver could as much as double your annual premium. This will leave you looking beyond the usual panaceas, like shopping around or playing with your deductibles, to find creative ways to save money on your insurance policy when you have a teen driver. 

1. Look for Companies That Offer the Best Discounts for Teen Drivers

A lot of insurance companies offer savings opportunities for parents of teen drivers. It is just a matter of doing your research to find those that do. You may find a company that offers a discount if your child is a good student who maintains a good grade point average or if your teen will take a driver's safety course. Even though not all companies offer teen driver discounts, some do, and taking the time to find one will be well worth the effort. 

2. Consider a Safe-Driving Monitor

One of the newest ways insurance companies are making it possible for drivers to save is through the electronic safe-driving monitor. This is a little device that actually plugs into your vehicle and transmits data to the insurance company about your driving habits. Things like proper braking and speed could easily help you save money in the long run. If your teen is an exceptional driver, adding this device to your policy plan could be a good thing that saves you money. Just be sure that before you commit to this program, you have a teen who is actually a good driver that will help to bring costs down.

Seeing your child grow into a capable driver may be bittersweet, but a change in insurance rates does not have to be such a big factor in this milestone. Talk to an insurance agent company like Powell's Insurance/Jeff Bradshaw for more ideas about how to save on your policy when you add a teen driver. 

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