Adding a teen driver to your auto insurance policy can be costly. Make sure you and your teen driver understand how even minor fender-benders can drive up costs. Consider the following tips:
- Try to keep both you and your teen’s driving records free from accidents and moving violations. Many companies grant discounts to drivers whose records have been clean for three or more years.
- Enroll your teen in a defensive driving course. Some companies offer discounts if your teen completes one.
- Encourage your teen to uphold a good grade-point average. Many insurance companies offer discounts or preferred rates for teens who maintain good grades.
- Ask your insurance company about an “accident forgiveness” clause that guarantees premiums will not increase after one minor accident.
- Consider raising your policy’s deductible and only allowing your teen to drive the family’s oldest, least expensive car. In most states, auto insurance premiums are linked to the type of vehicle driven. SUVs, convertibles and sports cars typically cost more to insure.
- Install a smartphone application that limits or prevents texting and driving.