Let’s face it – a car insurance policy is not cheap for anyone these days, and adding a teen driver to your policy can just about break the family budget. This may be a good time to review your own policy to find the discounts you should be receiving, and do a little shopping around – there are a lot of companies competing for your business!

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.

Developing safe driving skills is more difficult now than it was years ago for the parents of today’s teen drivers. From the increase in traffic on our roads to the number of electronic distractions (ie. Cell phones, GPS) in our cars today, focusing on learning good driving habits is challenging.

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.

If your hair hasn’t started to turn gray yet parents, the minute you hand over the car keys to your kid, it will for sure. Teaching a son or daughter to drive ranks high on any parent’s stress meter, and it only gets worse once they are behind the wheel by themselves the first year or so.

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.

All hope is not lost when it comes to young drivers saving money on car insurance. If you take the time to do some research on what will affect your rate, and do some shopping around you will be surprised at the amount of money you can put back into your pocket.

Shopping around is important – don’t just pick the agent your parents have used for years. Now if you are a parent shopping for your young driver, that goes for you too – while you should always check with your current insurance agent, don’t think that they are the only game in town.

Now that you are in shopping mode, here are a few things to keep in mind that will have an affect on finding the cheapest car insurance for young drivers.

The type of car – definitely not a sports car! Your choice in automobiles will play a huge part in determining the insurance premium. A standard sedan with plenty of safety features like anti-lock breaks, airbags, automatic seat belt, and alarm will result in a better rate. While the Buick Century might not be the most glamorous choice of a typical teen driver, it is a safe and cheaper choice than say a Ford Mustang or Honda Civic.

You might be surprised by the Civic, but believe it or not, they can be a higher insurance risk due to thefts and because of their small size they are more of a death risk for young drivers. Bigger breaks come for safe cars that generally cost less to repair than more expensive models. Do your homework and review safety reports and recalls on the car.

Check for discounts – There are discounts available to teen drivers that many people tend to forget about, such as the good student discount (B average) and safe driver discount.

Drivers under the age of 21 may qualify for a big discount if they take a defensive driving course, which some insurance companies provide themselves – or they will advise as to which safe driver course is approved by their company.

Do you plan to drive the car a lot? If not, check into low-mileage discounts.

If you have more than one policy with the company you are usually entitled to a discount, so check with the company that you might have your life or health insurance with, if they also handle auto policies.

Choices in coverage – If you are driving an older car that has very little cash value, you might want to consider dropping “comprehensive” or “collision” coverage, which would pay for damage or theft. You can check to see what they would pay in the event your car was stolen or damaged and weigh the difference yourself.

You may also want to increase the deductible as a way to lower your premium – just keep in mind that it will result in more out-of-pocket from you in the event of a claim. You can save a lot of money this way over the years, just as long as you have no unfortunate events.