Look at your existing coverage – are there ways you can save on your current policy that you may not have investigated before? One example I can give you from personal experience is double paying for towing and rental car coverage. Our family has had a AAA membership for years, yet we were paying for coverage on our insurance policy that we would never use – nor did we ever need rental car coverage.

What about lifestyle changes that could result in lower premiums? Some examples would be getting married, or changing jobs that resulted in a shorter commuting distance.

Think about raising your deductable amount if you have enough emergency cash stashed away. A higher deductable will definitely lower your premium. Driving an older car that you own free and clear of any loans? You may want to consider dropping the collision and comprehensive coverage if damages will more than likely cost more than your car is worth.

Do you have safety features on your car for which you have not been getting any credit? A few examples of this would be anti-lock brakes, front and side airbags, or anti-theft system.

Hopefully, the same company insures all of the cars in you household, since many offer multi-vehicle discounts on their auto policies.

Here are a few easy ways to lessen the blow of a rate increase when you add your new teen driver to your policy:

Good Grades = Better Rates – A student with good grades shows that they are more responsible.

The type of vehicle they drive will make a difference in premiums, so make sure that the car they will be assigned to in your policy is the one that will give you the lowest rate.

Here are a few examples of vehicles with the lowest insurance rates:

Chrysler Town and Country, Toyota Sienna, Honda Odyssey, Nissan Murano,
Ford Escape, Toyota Highlander, Buick Lacrosse, Honda Accord, VW Beetle, Kia Soul

If you must have a separate vehicle for your young-adult, make sure it is an older one that you can pay for in cash. You must have collision coverage if you have a car loan, and with a teen driver that can be very expensive. The ideal situation would be to let him/her have the old (paid for) family car, and let the adult get the new car!

A Driver’s Education Course may not be mandatory in your State in order to get a license, but you should make it mandatory in your family. Besides making teens safer behind the wheel, Driver’s Education can reduce premiums. Some insurance companies have their own program that upon completion can reduce premiums up to 15%.

If your teen is working (and using the car to get there), then make it their obligation to contribute towards their insurance (and gas, of course!). This will also provide them with incentive to be a safer driver.

Take the time to shop insurance companies and compare quotes – and always, always, always ask about discounts!! Never assume that your current company has the best rates or that your current agent has your back – after all, they are making a commission on your business.

Even the safest of drivers have at one time or another found themselves distracted by something that has taken either their eyes, or their mind, off the road and have put themselves/others at risk in the process.

Did you know that driver distractions are the leading cause of most vehicle crashes and near-crashes? The top 10 actions (alphabetically) that cause distraction while driving are:

Applying makeup or shaving.
Cell phone use – this includes text messaging.
Driving with a pet in your lap.
Eating or drinking, while driving.
Electronics – Fiddling with the radio station, CDs, iPod, or GPS.
Reading a map, book (yes, it happens), newspaper, or anything else.
Reaching for something.
Rubbernecking – looking at an accident or event along the side of the road.
Smoking.
Working – Business calls, writing or using laptop.

If not for listing these alphabetically, cell phone use/texting would have been listed as today’s number one distraction. It has become such a huge problem, that many states are adopting laws banning the use of cell phones while driving.

The solution is very simple. None of the above distractions are worth risking your life. Texting can wait. Talking can wait. Do your make-up and shaving at home, or in the bathroom when you reach your destination. Stop somewhere to eat. If you need to do something so badly that it cannot wait, then pull off of the road to a safe place before doing it. Simple.

Whether they want to admit it or not, all adult drivers have been guilty of one or more offenses listed above, which is often the reason young drivers pick up the bad habits. We should always remember to lead by example when driving with our teens, or our bad practices could come back to haunt us in the future.

The cost of car insurance is primarily based upon risk, and the percentage of risk is calculated from statistics. Those statistics show that accident claims by young drivers are higher than those of drivers over the age of 25.

Insurance companies combine the age risk factor along with other stats like the sex of the driver, their marital status, the type of vehicle driven and where they live, to determine the premium for drivers.

While young drivers are a risk because of their inexperience, there are still some things that they can do to cut their risk factor. Keeping up good grades (B or higher) and taking defensive driving courses are two actions that can result in cheaper car insurance for young drivers. Their choice of automobile will also play a part in the price quote.

Continually practicing safe driving will help to keep a good track record with your insurance and will eventually warrant a better policy rate. Teens should do their best to avoid distractions while driving – texting, playing with the radio and talking on the cell phone takes your focus off of the road and other drivers. Just one accident can send premiums skyrocketing.

It is a well-known fact that the chances of a driver having a crash are greatest in their first few years of driving. The National Safety council has been promoting Graduated Driver Licensing for a number of years in hopes of reducing teen drivers’ risk of crashing. The success rate has been such that many states now use a graduated licensing system.

What is Graduated Driver Licensing? There are three stages to graduated licensing, which is meant to progressively expose young drivers to challenges such as driving with other passengers, or driving at night. The details of each stage may vary from state to state, some ban the use of cell phones for example. To give you the basic idea, here is an example of what might be typical requirements:

First stage – The new driver must meet minimum age requirements according to their state (usually between 15 and 16 years old). After passing a written test, the driver would obtain a Learner’s Permit which would allow them to only drive with a fully licensed driver (some states add that the licensed driver must be over 21).

There are usually restrictions on driving, like only being allowed to drive during daylight for the first three months, and after that only until 10 p.m. – and always with the licensed driver in the passenger seat.

The driver must be ticket and accident free for 6 months to a year (varies according to state) before being allowed to proceed to the next phase.

Second Stage – After successfully passing the road test, the new driver would be issued an intermediate license – some places refer to it as a provisional license. This means that the driver is now free to drive by themselves, with certain restrictions. Those restrictions might be the hours of the day you are authorized to drive, for instance 6 a.m. to 11 p.m., unless a fully licensed driver accompanies you. There may be exceptions to the rule for working hours, but these details will vary according to where you live.

Again, the driver must be ticket and accident free for 12 months before being allowed to proceed to the next phase.

Third Stage – The driver would be granted a full license as long as they have met the previous requirements and are the minimum age of 18 (or age mandated by state).

This system has been proven to reduce the amount of accidents involving teen drivers by up to 40%. Florida was the first state to implement such a program back in the mid 90s and since then the majority of U.S. states have adopted a three-stage program.

Nevertheless, it is a rite of passage for every young adult, and we as parents are now faced with the fear our parents once had. We should do everything within our power to make this new experience an informative and rewarding one for our kids and ourselves, as this is a step towards their independence.

According to the National Safety Council more than 10 young drivers between the ages of 15-20 are killed every day in crashes, and another 745 are injured. In an effort to avoid becoming one of those statistics, here are some tips to help prepare your teen to be a safe driver.

Be a good example for your teen and practice what you preach. If you have a habit of running through yellow, or worse red – now would be the time to curb that behavior. You will be sending confusing signals by doing things you tell your kid that it is not okay to do. Do you constantly go over the speed limit, follow other cars too closely, or have a case of road rage? At this time, you need to be acutely aware of your habits – look at yourself through your teen’s eyes.

Learn the rules before getting behind the wheel by visiting your state’s Department of Motor Vehicles website. Many states have online guides, or they will tell you how to get a copy of their Driver Handbook. You will also get information about how to schedule your driver’s test and what you will need to bring. Parents should go over the material with their teen in addition to them reading it on their own.

When practicing driving with your teen, try to remain calm at all times! Keep in mind that there will be mistakes and if you react by freaking out, it will do more harm than good (especially if they are startled). Start practicing in an empty parking lot until the teen becomes comfortable with handling the car. This is especially helpful when learning to drive in rain or snowy conditions. It is important to practice driving on all types of weather, not just sunny days.

Another good source for learning safe driving tactics is your insurance agent – they often have videos and booklets available. Some insurance agencies offer safe-driving courses, which result in a discounted auto insurance quote once the course has been completed.