September 4th, 2014
While you might have a teen who's excited to get his or her driver's license, you're probably not looking forward to the new insurance bill. However, getting your teen covered doesn't have to cost you an arm or leg.
If you plan to add your new driver to your current auto policy, call your agent to discuss discounts. You and your teen may be eligible for loyalty, accident-free or good-student discounts. Some of these price reductions may take time to earn, such as the accident-free discounts, which may go into effect later once your child has a proven track record of good driving.
You should also add your teen as the driver on the oldest car owned by the family, The Motley Fool recommended. He or she will be covered while driving any car, but linking them to the oldest car will also be the least expensive option. Or if you plan to buy your teen a new car to drive, make sure you purchase him or her the safest option in your budget. It wouldn't be a bad idea to consult with your insurance agent regarding which models will get cheaper insurance than others.
Additionally, Kiplinger advised raising your comprehensive and collision deductibles to at least $1,000 to reduce your premiums. If you have older cars that are worth only as much as or less than your deductible, you can drop collision and comprehensive coverage on those vehicles to save money.
Adding your teen to your policy isn't the only option - it may be cheaper to get your adolescent his or her own policy. If you aren't eligible for any discounts on your auto insurance policy, look around at the prices for coverage through other agencies for your teen. You might find a better deal elsewhere.
After a few years of driving, your teen may decide to go away for college. If he or she moves more than 100 miles away and doesn't take a car, tell your insurer right away because you'll likely see a reduction in your premiums.