It’s no secret that adding a teen driver to your household is going to raise your auto insurance premium. Since insurance companies view inexperienced drivers as a high risk, putting your teen on your policy causes a significant rate hike. Fortunately, there are several things you can do to reduce costs as much as possible. Residents throughout the Piedmont-Tri area of North Carolina rely on the agents at MP Davis Insurance Agency to help them find quality coverage at competitive rates. Below, the agency goes over a few ways to save money on teen auto insurance.

5 Tips to Lower Auto Insurance Costs for Your Teen Driver

1. Choose a Car Carefully

If you plan on buying your teenager a car, it’s important to keep auto insurance in mind as you’re looking. Vehicles with better safety ratings and more safety features often cost less to insure than high-performance cars. It’s also typically cheaper to buy coverage for a used vehicle than a new model.

2. Promote Safe Driving Habits

A clean driving record is one of the most influential factors for determining auto insurance premiums. The longer your teen driver goes without causing an accident or getting a ticket, the sooner you’ll see your rates drop. Promote safe driving habits, and enforce consequences for disobeying traffic laws.

3. Encourage Good Grades

Many insurance providers reward student drivers for maintaining good grades by offering a discount on their policy premium. This should motivate your teen to stay on top of their studies, but it can also help to impose rules about letting grades drop below a certain GPA.

4. Enroll Them in a Driver Safety Course

Even though your child may have already gone through driver’s education before getting their license, they should continue learning the rules of the road. Enrolling them in a driver safety course will provide them with more information on staying safe while driving and may also make you eligible for an insurance discount upon proof of completion.

5. Set a Higher Deductible

Selecting a higher deductible will increase your out-of-pocket expense if you need to file a claim, but it can save you money on your premium. If you consider this option, make sure the deductible remains at an amount you’re comfortable paying in the event of an accident. 

When it’s for your child to get behind the wheel of a car, use these tips to keep auto insurance rates manageable. It’s also helpful to shop for a policy with your insurance agent, as they can often find additional discounts you didn’t know were available. Contact MP Davis Insurance Agency at (336) 498-7606 to request an insurance quote, or visit them online to learn more.