Purchasing Car Insurance for a Teenager

So, your son or daughter just turned 16 and they’re ready to drive around town. Most of your local car insurance companies probably consider them to be “high-risk,” so your premiums are going to be through the roof. However, there are a few ways to cut the overall cost and make the payments a little less expensive.

Put them on your Plan

Instead of allowing them to get their own car insurance, call up your current company and add them to your policy. Even though it could still be expensive, dual vehicles under one policy usually provides a discount. This approach could save additional money to make up for the extra cost.

Get them a Dated Car

A teenager that drives a Ford Mustang GT is going to have a higher premium than one driving a Volvo. In the car insurance company’s eyes, they consider sporty cars as “high-risk,” and even more so if a teenager is driving one. If you start them off with a 5 to 10 year old car, the premium will be a bit lower. It might not be what they want, but you can tell them to pay for it and they will sing a different tune.

Get the Best Security

It’s a good idea to have an alarm system on the vehicle. Car insurance companies always ask what type of precautions you take, which includes where the vehicle is when unattended. The answers here can make a huge impact in the amount of money it costs for your teenager’s premium.

Work or Pleasure

Another way to cut down the premium costs is by stating whether the vehicle will be used for work purposes or for fun. If the teenager is only driving to and from work, the premium will be less. One area this surrounds is the amount of miles that will be driven.

Whether you purchase a policy online or go with a local in-store company, they’re going to ask you to estimate the amount of miles the car will drive annually. The lower the number, the less likely it is to get into an accident or have something else go wrong with the vehicle.

When the car insurance company sees low risk potential, the premium amounts will be a bit lower. However, you should still expect your teenager’s premium to be more than yours.

So, before you just opt for any type of car insurance, take the time to research and compare all the companies out there. They will most likely have different benefits available based on the information you provide. Then you can start narrowing them down and eventually you will end up with the lowest price with the most benefits.

It’s a good idea to have your information handy when researching the various car insurance companies. This way you can get an accurate quote from each one and figure out the best financial solution for you and your teenager..