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If you have a child in your household who has just obtained his driver's license, you are probably worried about how your teen's driving status will affect your car insurance premiums. Most of us know that insuring a young, inexperienced driver can be expensive. Insurance companies rate drivers on age and experience – as you have probably guessed, the highest rates are assigned to teens. Fortunately, there are ways you can provide the car insurance your teen needs without spending a small fortune on premiums. Adding your teen to your existing auto insurance policy is one of the simplest ways to minimize your costs. You might think that forcing your teen to buy her own policy will teach her independence; however, it will also cost far more than including her on your policy. This is because most insurance carriers use an algorithm that averages the rating factors of all drivers on a policy. As long as you have a clean driving record, averaging can help offset your child's high rating factors. Talk to your agent or broker to find out about policy discounts that might be available. Most insurance companies offer a wide range of discounts that can significantly lower your premiums. For example, if your child is a stellar student, find out if your carrier offers a “good student” discount. You might have to supply the agent with a copy of your teen's grade report; however, this simple step might knock 5 percent or more off your rates. Similarly, if your child takes an elective driver improvement course, you might qualify for an additional discount. Your teen might not be happy about the prospect of spending a Saturday afternoon sitting in a classroom, but the savings might be worth the complaints you will hear. If your teen driver owns a car, have your agent or broker place the vehicle under your policy. Since the vehicle must be insured anyway, you might as well insure it as inexpensively as possible. Covering more than one vehicle under a single policy might also make you eligible for a multi-car discount, which could shave an additional 5 to 10 percent off your policy premiums. Work with your teen to help him develop responsible driving habits. As long as she avoids accidents and traffic citations, her rating factors will significantly decrease over time. If you find that your premiums are still too high, consider looking at other insurance carriers. An independent agent can compare your rates against those charged by competing insurance companies and determine whether you could save money by switching carriers. You can also obtain and compare quotes online to look for cheaper coverage. Many insurance carriers provide online quote engines that allow you to obtain rates in as few as 10 minutes. There are even comparison sites that provide quotes from multiple carriers at once. Using a comparison site can save you time while allowing you to get the pricing information you need without ever having to leave the house. If you find a quote that fits your budget, you can typically purchase your new policy online. Finally, avoid buying your teen a new, expensive car. Newer cars are more expensive to insure than older models. Buying your teen an older sedan instead of a new Mustang might not thrill her, but it could save you hundreds of dollars in auto insurance costs each year. Although car insurance for a teen driver is never cheap, these steps can minimize the cost of insuring your child. You can obtain the peace of mind of knowing your teen is covered without worrying about how you will pay your car insurance bill each month. Author Sam Jones is often asked where to find the best car insurance for young drivers. He always suggests uSwitch.com price comparison site as a great resource for getting the cheapest quotes
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