Talking With Insurance Companies

So, your teenage son or daughter is finishing up driver's education classes and will be a driver on your auto insurance policy in the very near future. You will either be purchasing a new vehicle to add onto the policy or you will just be adding him or her as a driver for one of the vehicles already on the policy. Either way, you are expecting a pretty big spike in the premiums. Is there anything that you can do to help keep those premiums down? Yes! Here are three ways you can save on your auto insurance once your teen is added.

Good Student Discount

Hopefully your teenager makes good grades. If he or she makes good grades (usually at least a B average), then you can generally qualify for a good student discount. And once your child heads off to college, if he or she stays on your auto insurance policy rather than branches out and gets his or her own policy, you can continue to benefit from his or her good grades.

Safe Driving Habits

Everyone in the family needs to drive safely, and this includes your teen. The longer that everyone maintains a clean driving record, the more rewards that will be provided by the insurance company (assuming that your insurance company participates in this type of reward program, and most do nowadays)—and the less your premiums will be. The reasoning behind this is because the auto insurer will see you as less of a risk on the road, so they reward you for your good driving behavior by lowering your premiums.

Spy Technology

While it may seem a bit invasive, you may want to consider allowing the insurance company to "spy" on your teen while he or she is driving. In fact, if you aren't already participating in this program, you may want to let them "spy" on you as well! Essentially, the insurance company will provide you with a device that you will plug into a small port that is beneath your dashboard. This device records data regarding the speed you are driving, how fast you brake, how fast you accelerate, how many miles are driven, etc. If you practice good, safe driving habits, you will receive discounts on your premiums. Drivers (or parents, in some cases) can get a report of their driving, which can essentially assist in better decisions being made behind the wheel.

For more information about any of these insurance-saving tips or additional ways to save once your teen starts driving, contact your auto insurance company.