Due to their lack of driving experience, even teens with clean driving records will face high car insurance rates at least until they reach 25 years old. Adding a teen driver to a family auto policy causes the premium to soar. Here are five ways for families with teen drivers to save money on auto insurance:
1. Carry liability coverage only or remove collision coverage
Comprehensive and collision coverages protect you against expenses related to repairing your vehicle if you get in an accident. These two coverages are among the more expensive coverages on an auto policy. You could save a lot of money if you opt out on them.
Keep this strategy in mind BEFORE you purchase a vehicle for your teen driver! It may not be an option if you finance the vehicle. If a vehicle is financed, the lender will require you to carry comprehensive and collision coverage. Newer, more expensive vehicles may be tempting, but they are expensive to repair. If you don’t have comprehensive and collision coverages, you may have to pay out of pocket to repair your teen’s vehicle after an accident.
2. Go for the good student discount
With proof of good grades, carriers offer discounts to teen drivers. The good student discount is important for several reasons: Saving money on insurance, earning a higher income throughout their life, teaching goal setting skills and self-discipline.
Depending on the carrier, high school and college students can save 6%-36% on their auto insurance with good grades, according to ValuePenguin. Good grades can lead to a higher income throughout their lives. This discount can be used as a bargaining tool for the parents. Parents can make a deal with their teen drivers and offer to pay the insurance premium as long as they keep a 3.0 GPA, and if they don’t, the teen would have to pay the difference. This could help motivate teens to make good grades.
3. Change the listed garage
Changing the ZIP code of the listed garage address could save some money on insurance. Large metropolitan cities have higher insurance premiums than smaller towns. Keep this in mind if a teen takes their vehicle when they move from the big city to a less populated college town.
4. Remove the teen from the policy
Parents can save money by temporarily removing their teen from their policy in certain situations. For teens that do gap years or semesters abroad, you can remove them from the policy for that rating period. There are also discounts available for teens that attend school 100 miles or more from home without a car.
5. Enroll your teen in driver education
Teens who successfully complete driver education could save as much as 20%, depending on the insurance carrier. Driver education programs are offered in virtually every state. Check to see if your teen’s driver education program is accepted by your insurance carrier.
How can I find the best auto insurance for my teen in Oklahoma?
There are two easy ways to get a quote or request more information for auto insurance for teens in Oklahoma:
- Call/Text (405) 605-9891
- Email jp@schererinsurance.com
When you request a quote from Scherer Insurance, you can be confident that every possible credit and discount will be requested.