It’s no secret—teenagersare expensive to insure because they are the highest risk age group when it comes to auto accidents. Up to now, the only option parents had been to bite the bullet and just pay extremely high auto insurance when their teen got their driver’s license. In recent years, auto insurers have come up with some creative and innovative ways to provide discount programs geared towards teen drivers that can take some of the sting out of adding teen drivers to their parent’s policy.
Policies for teenagers were expensive back then, as they are today. However, recently insurers came up with new solutions
Travel Journals
Some companies will offer a discount to a teen driver who will agree to fill out a workbook journal type of book that provides tips and little quizzes for teens to read, fill out, and learn. It also
provides spaces for the teen to write about their driving experiences and what they have learned with the course.
Some companies that offer this type of teen driving program will give an initial discount just for agreeing to do it, and then provide a bigger discount after it is completed. Some companies require the workbook to be completed and turned in before the discount is applied.
Safety Driving Courses
This isn’t especially new, but most companies offer a discount if a teen has completed a driver’s education course or an accident prevention course. It does vary by state and by company, so if you have a teen driver you will want to check.
Some insurers will even provide teen driving seminars that if you and your child attend, you will get an additional discount.
Good Grades
This isn’t new either, but you will want to check with your company to see if your teen could get a good student discount and what they need to apply it to your policy. Don’t make the mistake of thinking this discount isn’t big enough to warrant the time it takes to get a transcript or report from the school. In some cases, it can provide a significant savings.
Tracking Devices
A couple insurance companies have designed an innovative device that can be plugged into your car and track driving habits. If you agree to plug it in and leave it in for six month, it could provide a discount. This isn’t just for teens; however, if your insurance company offers this, it is a great way to provide discounts for everyone.
You will want to be sure to fully understand all the information about the device, what it tracks, how it tracks and what can cause the device to track poor behavior that will eliminate receiving the discount. You will want to clearly and carefully relay the information to your teen driver so they understand what to do and what not to do in order to receive the benefit of the device.
Putting the Responsibility on Your Teen Driver
If your child is driving and these discount options are available and they do not want to do what is necessary to receive them, some parents are encouraging them to change their minds by either taking away their driver’s license until it is done and/or requiring the child to pay the portion of the insurance that increase as a result of them being added. Often, this is enough to cause your teen to comply.
A little bit of tough love now could save you a bundle of money, and even more importantly, save the life of your teen. The more your teen understands and can cognitively process the responsibility and the dangers of risky driving, the less likely they are to do something irresponsible and injure themselves or others.
Insuring a teen driver can be financially draining. Take some of the pressure off yourself and provide those additional learning opportunities for your teen so
that they are better equipped for safer driving. Everyone can sleep better at night as a result—or at least ease your mind when you’re waiting up late at night to make sure your teenager gets home by curfew.
Image: Flickr.
