If you have a teenager who has recently passed their driver's license exam, you will most likely be allowing them to use this to their advantage by driving your car--or possibly one of their own. When selecting an insurance policy for your teen driver, there are a few steps you can take to make sure you are getting the best possible rate. Here are some tips to help you get a car insurance policy that will not break the bank.
Do Some Comparison Shopping
Before adding your teenager to your own car insurance policy, do some comparison shopping to make sure there isn't a better deal out there. Get quotations from at least three different companies so you have an idea of the average cost it will be to get a new policy for your teen. Bring this information with you to your own insurance company to see if the pricing they quote is within the same range.
Look For Discounts
There are several insurance discounts available for new teenage drivers. If you decide to add your teenager to your own policy, you may be eligible for a multi-vehicle discount. Some insurance companies will offer a discount for a student who can display a report card with all A's or B's. Another discount some insurance companies offer is for students who take a driver's safety education course in addition to the driving courses offered through their school. There are also discounts given if the mileage will be low by driving locally.
Decide On The Company
After you have looked into the pricing choices and you know which companies offer which discounts, you can use this information to decide which company offers the best deal. In most cases, it will be cheapest to add the teenager to your own policy, but it doesn't hurt to check the other companies to see if they offer something better. Keep in mind that the cheapest policy does not always mean the best policy. It may be cheaper because it is offering less coverage benefits, so be sure to weigh this information into your decision.
Picking Out The Vehicle
The car your teen will be driving has an impact on the amount the insurance will cost you overall. If you are adding your teenager to your own policy, you may get a discounted rate for assigning them to drive whichever vehicle on your policy is the cheapest to insure. If your teenager will be driving their own vehicle, the year, make and model will impact the price. Opt for a family sedan instead of a sports car if you are concerned about the insurance pricing.