Best Ways to Keep Insurance Premiums for Teenage Drivers Low
Do you have a teenager about to hit the road for the first time? It’s a nerve-wracking prospect for any parent, especially given that motor vehicle accidents remain a leading cause of death for teens. In 2022, over 2,800 teenagers aged 13 to 19 were killed in car accidents, with an additional 180,000 teens treated for crash-related injuries (IIHS Crash Tests). Due to these statistics, teen drivers often face higher insurance premiums. However, there are effective strategies to help ease both your mind and your wallet.
1. Choose a 12-Month Insurance Policy
When selecting an insurance policy for your teen, opt for a 12-month term rather than a 3- or 6-month policy. This way, even if your teen is involved in an accident, the premium won’t increase until the policy is up for renewal.
2. Insure Your Teen on the Cheapest Car
Insurance rates vary significantly depending on the vehicle. Insuring your teen on your cheapest, most basic car—rather than a newer or sportier model—can result in substantial savings on premiums. The older the car, the lower the insurance cost, so choose wisely.
3. Take Advantage of Good Student Discounts
If your teen is a good student, they may qualify for a discount on their insurance policy. Many insurers offer 10-20% discounts for high school students who maintain a 3.0 GPA or higher.
4. Use Safe Driving Programs Like Teen Safe Driver
Several insurers, such as American Family Insurance, offer programs like Teen Safe Driver. This app tracks your teen’s driving habits, providing feedback on speed, hard braking, and distracted driving. Parents also receive reports, enabling important conversations about safe driving. After completing the program, families can save an additional 10% on insurance.
5. General Safe Driving Tips for Your Teen
Aside from specific programs, having open conversations with your teen about basic safe driving tips is essential. Here are a few key points to emphasize:
- Always Wear a Seatbelt: Seatbelts save lives—about 15,000 annually, according to the National Highway Traffic Safety Administration (NHTSA). Remind your teen that seatbelts reduce injury risk by keeping them inside the car and spreading out the impact of a crash.
- Avoid Distracted Driving: Distracted driving is a factor in nearly 60% of teen crashes. Teens need to understand that even seemingly minor distractions, like changing the radio station or talking to friends, can lead to accidents. Distractions like texting and talking on a phone, even hands-free, are particularly dangerous.
- Beware of Red Light Runners: Encourage your teen to pause before accelerating when a light turns green. Red light running is becoming increasingly common, and a moment of caution can help avoid serious accidents.
6. Backing Into Parking Spots
Parking lots are hot spots for minor accidents. Teaching your teen to back into or pull through parking spots can give them better visibility when leaving, reducing the risk of hitting a pedestrian or another vehicle.
Learn More and Get a Free Consultation
Want to know more about how to keep your teen safe on the road while lowering insurance premiums? Watch attorney Phil Harding discuss these tips on Colorado’s Best on KDVR Denver. As always, if you have questions or need legal advice after an accident, contact us for a free consultation.
