Young Drivers Can Save Money On Car Insurance

When teens get their driver's licenses, things change. They begin asking to borrow their parents' cars, they feel more independent and soon, they start to ask for a car of their own. One of the most expensive changes occurs when it comes time to insure the new driver.

Many parents and young drivers wonder what the best course of action is when insuring a new driver. Adding a new driver to a parent's insurance is expensive. Though it depends on the state and the insurance company, adding a new driving to an existing insurance plan is sure to raise the cost significantly.

This brings some parents to the conclusion that new drivers should have their own insurance policies. However, this is a misconception; even though adding a young driver to an existing policy is expensive, it is actually more expensive for young drivers to have their own policy.

"It is more expensive for young drivers to have their own policy."

As teens get older, the added cost goes down. An 18-year-old will usually pay more for their own insurance than a 19-year-old, though a number of outside factors such as driving record, family history and location also play a role. Young adults in other states could be paying more for their own policy until they turn 25, and even then, a reduction in insurance premiums is not guaranteed once a driver hits this milestone.

Even though car insurance is expensive for young drivers, there are still some ways to save money.

1. Get good grades: Some insurances offer discounts for students who get Bs or better, according to the Department of Motor Vehicles.
2. Don't buy a fancy car: According to the Oklahoma Society of CPAs, some cars are more insurance-friendly than others. Talking to an agent can help determine what kind of car is cheapest to insure. An even more cost-effective is to just let a teen drive a car the parents already own.
3. Make adjustments when college starts: If a teen goes to college without a car, some car insurance providers are willing to offer discounts, according to the Insurance Information Institute. If a college student lives 100 miles away or more, it's safe to say they aren't driving the car regularly and many insurance companies understand this.
4. Drive carefully: Speeding up quickly and breaking hard will waste gas and is dangerous. When driving more carefully, gas lasts longer and ultimately saves the driver money. Time Money reported this could result in saving as much as $477 a year. Plus, driving safely means less risk of accidents. According to the DMV, having a clean driving record could result in discounts later on.

There's really no getting around added costs to insurance when a teen needs car insurance. However, through some research and careful driving, there are ways to keep the rising prices down. Make sure your car insurance is right for you and your teen. Check out CoverHound's convenient website to compare car insurance prices.