6 Tips for Insuring Young Drivers

Written By Mary Beth Eastman
Last updated May 2, 2019

Note: We receive a commission for purchases made through the links on this site. Our sponsors, however, do not influence our editorial content in any way.

May 2, 2019

Simple. Thrifty. Living.

If you have recently looked into car insurance for your teen, you may be floored by the cost. That’s because new drivers pose additional risk to insurance companies, who don’t want to pay out accident claims.

Fortunately, you can ease the financial burden of your teen’s car insurance. Here are some ways of showing the insurer your charge is a reasonable risk. When in doubt, ask your insurer what discounts they offer. These are just a few examples of policies they may have in place to make it cheaper.

Safe driving is a path to lower insurance costs, even for adult drivers. If your teen is just starting out, sign them up for driver education classes. Then, let your insurer know you are taking steps to keep them safe on the road. They may have a discount for you.

In states with a graduated licensing program, your premiums may decrease as you advance. So it makes sense to go through the course as quickly as possible. See how you can expedite the program until you get the lowest possible premium for your level.

You may have noticed your premium costs go up if you add your teen to your insurance policy. But it’s likely still cheaper than insuring them on their own. Compare prices and use strategies like getting quotes from different companies to see what’s the best rate. Shopping around may get you a lower cost.

Since your teen is the one driving, considering having them kick in for the cost of the insurance. It helps ease the burden on your finances and helps prepare your child for the realities of buying insurance as they get older. If they have a part-time job, they can set aside some of their earnings for their bills — just like you do.

Once you have an insurer, stick with it. Many companies will eventually offer discounts for drivers with a clean driving history. They will also favor policy holders who have been with them for a long period of time. Loyalty can pay off.

Pricey cars are typically pricey to insure. Outfit your teen with a less expensive model. Insurance companies are more likely to reduce the rate if they are driving a cheap and safe vehicle.

At the end of the day, the best way to get the best rate is to chat with insurance companies. Policies differ from company to company, so you should know in advance what can help you get the best coverage, at an affordable rate.

About the Author

Mary Beth Eastman

Mary Beth Eastman serves as the content manager for Simple. Thrifty. Living, where she is dedicated to helping readers use money and credit wisely. Mary Beth believes that access to the right financial information paired with a growth mindset are essential tools for getting out of debt and building wealth. Mary Beth has a degree in Journalism from Bowling Green State University and has focused her 20-year journalism career on putting readers front and center, carefully considering their concerns and presenting information that will help them in their everyday lives. She has won numerous statewide journalism awards. Her writing on personal finance as been featured on numerous websites in addition to Simple. Thrifty. Living, including Huffington Post and Lexington Law blog. Mary Beth resides in Pittsburgh, Pa., with her family and two rescue dogs.

  • No comments yet. Be the first to get the conversation started. Here's some food for thought:

    Do you have any thoughts?

Submit a Comment

Your email address will not be published. Required fields are marked *