Insuring Your Teen Driver

Getting the best deal to insure your teen driver starts before he or she is able to drive. If you try to shop for insurance after your kid starts to drive your options will be limited. Why? Teen drivers have the least experience and the most accidents. Your current insurance company will not drop you just because your child started driving. However a competing company may not let a new customer buy a policy who has a teenaged driver. If they do let you buy, they may not give you their best rate.

1. Shop for car insurance before you have a teenage driver.
2. Ask about good student discounts and driver’s education discounts for new drivers.
3. Switch to the company that will offer you the best deal before your oldest gets their license

Strategy for Getting the Best Deal

Shop for the best rate when your oldest is a year or so away from being eligible to drive. Ask each auto insurance agent to calculate the best rate for your present situation and for the situation you expect to have when your child begins to drive. Explain that you want to switch policies now. Switch policies early so that you are an existing policy holder before your child starts to drive.

This strategy has the added advantage of letting you know in advance the approximate rate you will pay when your “baby” starts to drive. Also since your car insurance rate may be impacted by your child’s grades, this may give you some extra incentive and leverage to motivate your child to do their homework.