As a parent, you can expect your car insurance premiums to increase once your teen driver gets behind the wheel. In fact, adding a teenage driver to your policy can nearly double your premiums. Aside from encouraging your teenage child to take defensive driver lessons, follow these money-saving tips to cut down the cost of car insurance for teenagers.
1. Take advantage of multi-policy discounts
Getting your auto, home and life insurance from one company will not only save you time by having all your bills in one place, you can also save up to 25% on your policy by bundling your insurance policies.
2. Opt for higher deductibles
Having higher comprehensive and collision deductibles may increase your out-of-pocket expenses, but they can also save you hundreds of dollars by drastically reducing your overall premium. Taking advantage of Nationwide’s “Vanishing Deductible” option could help offset your higher deductible in the event of a claim.
3. Reward your child for good grades
If your teen driver is a full-time student with a B average or higher, they may be eligible for a good student discount. If the student is homeschooled, however, they must score in the top 20% of a standardized test such as the SAT.
4. Buy a safe and reliable car
High-end car models are more costly to insure, so opt for a more a practical vehicle equipped with safety features, such as anti-lock brake system (ABS), anti-theft devices and rearview cameras.
5. Get a pre-owned car
Car insurance rates for used cars are usually cheaper than new models, so forget that brand new SUV and drive away with a slightly older vehicle instead.
6. Sign up for Accident Forgiveness
Even the safest drivers can get involved in a car crash, but with Nationwide’s Accident Forgiveness add-on option, drivers can avoid a rate increase following their first at-fault car accident.
For a teenager, getting a driver’s license is a step towards independence, but it comes at the cost of
higher insurance rates. By following the tips above and practicing safe driving habits, you can lower the cost of car insurance for you teenager.
Savings compared to standalone price of each auto, home and life policy. Based on new customer data from May 2010.
Vanishing Deductible is an optional feature. Annual credits subject to eligibility requirements. Max. credit: $500. Details and availability vary by state.
Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply. Discounts may not be applied to all policy coverages.