The words “cheap” and “car insurance” usually don’t go together in the same sentence for a 17 year old, or anyone under age 25 for that matter. The simple fact is, this age group has a higher incidence of auto accidents and insurance claims than any other age group. That’s not likely to change. That’s not to say that measures cannot be taken to help reduce these insurance premiums. You are not just at the mercy of insurance providers. Here are some suggestions.
Comparison Shop – Just like the television commercials say, you can save up to hundreds of dollars annually. The greatest variation in insurance rates among age groups with the 16 – 25 age group. Different providers have different methods for figuring premium rates for younger drivers. It pays to look around.
How to Handle a Teen’s Policy – Should a teen’s policy be set up separately or become an insured driver on an already existing policy? It’s worth looking into see which approach will be most financially advantageous. The better driving record a parent has, for instance, the less expensive it would be to simply add the teen to that policy.
Check the Age Break – This applies to someone a little older than 17, but it is still good to know. At what age is a driver considered an adult? Many companies still use the age of 25, but others have changed to age 23. Lower rates should result at whatever age the insurance company considers a driver an adult.
Car Choice – Vehicle makes and models do have an impact on insurance premium rates. A 17-year-old may have a dream car they’d love to drive, but it’s very possible that would come at a price, and not just the cost of the vehicle. Older, used vehicles can easily have much better premium rates due to better crash test rating scores and a lesser possibility of being stolen.
Registration – Will the car to be insured be registered in the name of the teen or the parent? It will likely be cheaper to keep it in the parent’s name.
Assigned Vehicle – How does your insurance provider handle a teen driver? Is the driver assigned to a specific car or are they insured to drive all vehicles under the policy? Cheaper rates are available when it’s possible to assign a specific automobile. Of course, that means they are not insured to drive other family vehicles. If they did, and had an accident it could significantly increase insurance rates overall.
Good Grades – Keeping a B average in school can qualify a student to a good student discount. This can be as much as 5 – 10%.
Driver’s Education – Is another way to get discounted insurance rates. Qualifying programs can earn as much as a %15 discount. Some states even require driver’s education in order to get a license at age 16. If not, it won’t be available until age 18.