teen car insurance

5 Tips for Cutting Teen Car Insurance Rates

Car insurance for teens can be very expensive, but there are ways you can cut your premium. Even small discounts can make a big difference in the long run so here are some surprising ways you may be able to bring down your monthly car insurance bill.

1. Good Grades

Many car insurance companies offer discounts if your teenager is an excellent student. If they maintain a certain GPA or are part of the honor roll list, then you can get steep discounts that’ll apply to your premium. You can also get a discount if your teenager is in college. To qualify, your child should be a full-time student and maintain a high GPA—if they’re on the Dean’s or President’s list, this is a good way to prove good grades.

2. Safe Driving Courses

The likelihood of teenagers getting in car accidents are much higher than adults, making them much more expensive to insure. However, studies have shown that if a teen takes a safety driving course, they’re less likely to get into an accident. For this reason, some car insurance companies allow your child to take a class and as an incentive, you’ll pay less on your monthly bill.

3. Purchase an Older Car

Newer cars are much more expensive to insure because the insurance company has to cover the value of the vehicle—if you bought a brand new car, that’s tens of thousands of dollars. Lower the car insurance for teens by purchasing a lesser value car. These cars can still be very safe, but are much less expensive for insurance companies to cover. It could mean the difference between a $300 and $150 per month. 

4. Technology Programs

Teenagers that drive safely and strictly obey the rules of the road are less likely to get into an accident, but how do car insurance companies know your child is driving safe? Now, there are technology programs, such as AllState DriveWise, that monitor your teen's driving behaviors and rewards them for being safe. Some programs offer cash back while others give you a discount when you renew your policy with the company. 

5. Shop Around

Nothing’s more important than shopping around for car insurance for teens. Many people believe that you should shop around for a new policy once a year to be sure that you’re getting the lowest price possible—being loyal to a company may not always mean lower premiums. If you’re concerned about how much you’re paying per month, you can visit a competitor and ask for a free quote. A way to trick the insurance company, call them back and inform them that you’re considering a switch due to a lower quote and, often, your current car insurance will try to keep your business by lowering your monthly payment. 

Last Updated: October 18, 2017