How to Afford Car Insurance with a New Teen Driver in the House

When your son or daughter reaches sixteen, he or she will likely be asking you for a car as a birthday present. Such occasion should be seen as a celebration since when your kids learn to drive, you will be relieved of your duty to take them to their friend’s houses, to drive them to the mall, or to fetch them from their school. But while this situation could mean one less task for you as parent, having a new teen driver in the house also comes with a great price. This price, literally, comes in your skyrocketing car insurance because adding your kid into your policy will certainly result into one.

There’s no avoiding in getting car insurance for your teen. This policy is mandatory by law and it provides the necessary protection for your child. However, you should be aware that its cost can be three to five times higher compared to the adult rates. The reason for this is that the insurance companies view your teen driver as a high risk.

So, with this additional high premium payment looming before you, for sure, your frugal instincts will be kicking into high gear. Perhaps, you are wondering if there are any means for you to be able to pay this rising insurance cost without burning holes in your pockets. Lucky for you, Auto Insurance Austin has come up with some excellent suggestions on how you can manage and afford this cost.

One of the things that you can do to earn the biggest savings in your auto insurance is to provide your teen with a simpler or an older car. Gifting him or her with a brand-new sports car would serve as an ultimate sixteenth birthday present; however, such a car will be a poor choice if you wish to save on your insurance costs. Sports cars and brand-new autos will definitely hike up your premiums. Sports cars are often driven fast by teen drivers and this condition makes your kids very prone to accidents. Be aware also that the newer the car, the higher the rate will be. Choose simpler yet reliable late model cars instead. Doing so will certainly not cause a significant rise on the cost of your premium.

Find out what discounts your teen is eligible for. Often insurance companies give discounts to teens who maintain good academic grades. When your daughter or son does a “B” average or even better in school, this will usually qualify him or her for a student discount. Another way to snag a discount is to have your teen enrolled in a driver’s safety education course.

Once your teen is behind the wheel, always remind him or her to maintain a clean driving record. Let it be known to your child that every time he or she racks up a violation, this reflects negatively on your insurance costs. Stressing a clean driving record is necessary so you don’t hurt your chances of availing discounts later on.