Tips for Teenagers to Save Money on Auto Insurance
Receiving your driver’s license is an exciting time for teenagers. Nonetheless, this means that your teenager will need to be insured with auto insurance. Of course, car insurance can be expensive, especially as a new driver. So how do you shop for the best deals on car insurance as a teen? Here are a few tips teenage drivers should consider to save money on auto insurance.
[ READ MORE: What is Comprehensive Insurance? ]
Get Good Grades in School and College
Did you know that insurance companies offer discounts to students that maintain good grades in school and college? While the grade requirement varies based on the insurance provider, maintaining at least a B average is common. Discounts could be flat-rate cash savings or a percentage off. Make sure to consult your insurance provider to ask about any student discounts.
Avoid Driving a Performance, Luxury, or New Vehicle
The value of the vehicle you drive will impact the amount you pay. Teens that drive a performance, luxury, or new vehicle can expect to pay much more than other teens that drive older cars. This is due to high-value vehicles being higher targets for vandalism and theft as well as being much more expensive to repair or replace if an accident occurs.
Consider an Umbrella Plan with Family Members
An option to consider is entering an umbrella plan with your family members. Many parents choose this route as many providers give discounts with multiple vehicles and drivers being under one plan. This option will require a serious discussion, however, as any accident your teen is involved in can increase the premium on that umbrella plan. A common workaround for many families is for the teenager to cover the premium increase if this occurs. Of course, we also recommend doing some research and getting quotes from multiple providers to see if the umbrella plan will be better for your teen financially.
Practice Safe Driving
Regardless of your age, practicing safe driving will save you lots of money. For example, a driver with no record of any speeding tickets will pay less than a driver with a few recent speeding tickets. Not only will you save money, but your chances of getting involved in a car accident will decline as well. Basically, continue driving as if you were still preparing for your road test.
Are you a teenager looking for an affordable and reliable vehicle? Helping your teen shop for a vehicle that is right for them? Browse our inventory at Broadway Credit online here. If you spot some options you are interested in, contact us and we will be happy to help!