Teen Driver? 3 Tips To Avoid Overpaying On Auto Insurance

Some parents look forward to the day that their teens can get their driver's licenses and can drive themselves around so that the parents don't have to do it anymore. Other parents dread the day because of the spike in insurance premiums that they'll have to deal with. If you're one of the latter parents, there are a few things that you can do to help reduce the costs of auto insurance. Here are three of them:

Encourage More Studying and Better Grades

Most insurers will offer decent discounts, up to 25 percent, if your teen driver gets good grades at school – high school or college. Usually, they need to have a B average or above and/or be included on the honor roll or the dean's list. For homeschooled students, it is possible to receive the good student discount if the teen scores within the top 20 percent on standardized tests, such as the ACT, SAT or PSAT. The requirements will vary among insurance companies so check with your insurance carrier to find out what exactly is required of your teen to get this discount.

Buy Them a Safe Car.

While your teen driver will likely beg you for a beautiful red sports car, it is the last thing that your new, inexperienced driver needs. As a parent, you need to be smart about the automobile that you get for your teenager. A sports car is not only expensive, but unsafe for your teen. Instead, you should consider one of the cars on the list of top vehicles for teens from the Insurance Institute for Highway Safety. They're rated some of the safest and most affordable used cars available. They'll be much cheaper to insure than a sports car and they'll provide you with more peace of mind when you put your head down on the pillow at night too.

Consider Use-Based Insurance.

Since you want to make sure that your teen is driving safely, you may want to consider a use-based insurance policy. If your insurance carrier offers it, they'll provide you with a device that plugs into the vehicle and monitors your teen's habits. If your teen drives well, which means no speeding, swerving, harsh braking, etc., then you can save money on your insurance premiums. However, if your teen doesn't, you may notice a spike in your rates. You should be able to have access to a database that allows you to track your teenager's habits yourself. As a parent, you can use this to discipline your teen and teach them some responsibility as a driver so that they can avoid accidents and drive more safely.

To learn more about cutting down on the costs of insuring your teenager, contact a company like Montana First Insurance Inc.