How to Lower Car Costs for Teenagers

Teens can save on car expenses too

Teen Driver
Getty Images/Siri Stafford

Lowering car costs for teenagers is not an easy task. Driving a car is expensive for all drivers. When you add up all the costs of the vehicle itself, gas, maintenance, and car insurance it can seem as though the expenses are never-ending. Focusing on cost savings will aid you in the decision-making process when it comes to teenagers and their first set of wheels.

Lower Car Loan Costs

Young drivers will benefit the most financially by avoiding financing their first vehicle altogether.

By purchasing a vehicle outright, young drivers can save big on monthly payments and car insurance costs. Saving up enough money to pay in full for a reliable vehicle is not always a possibility. If you can’t get away without a car loan, look for a car loan geared towards students.

Car loans for students: As a student driver probably in your upper teens, you are most likely looking for a sexy, fast car with a lot of options. Once you calculate all the numbers, you might be surprised and likely disappointed to see what is actually attainable. Lots of parents do not like to fork over all the cash and want to see you finance at least a portion of the vehicle on your own to show some responsibility. Not only should you shop for a vehicle but also a good car loan. Look for a lender who rewards full-time students so you can save a little on interest rates.

Lower Car Insurance Costs

First-time drivers have a tough time because right at the get go they are classified as high risk due to lack of driving experience.

Most teenagers have no idea about car insurance and without guidance can end up paying a whole lot of money.

Be a savvy shopper: Search high and low for the best car insurance rate. Getting a car insurance quote is always free regardless how high profile insurance carriers advertise it as a special offer.

Free quotes mean potential savings. It might be cheaper to stick with your parent’s insurance carrier, but why not shop for a lower rate for your parent’s too? Keeping all insurance under one roof with one insurance provider often gets you the best price on car insurance.

Know the cheapest coverage: Understanding what coverage is required is the first step to making sure you are getting the lowest price. If you do not have a car loan, you have the right to choose your state’s minimum liability coverage. The minimum coverage is what it takes to be legal but can fall short of covering all of your needs. Preferred insurance limits can often be rewarded with lower premiums. Talk to an insurance agent to see what coverage is the best and most cost effective for you.

Get the good student discount: You work hard for your good grades and lots of car insurance providers give a good student discount as a reward. Grades not quite up to par? It is never too late to turn things around. It typically takes one semester of a 3.0 or better to qualify for this big money saver.

Best car insurance discounts for teenagers: Just because you are a student doesn’t mean the good student discount is the only discount offered.

Teenagers are eligible for all the same discounts as other drivers. Qualifying for discounts on insurance is hard to do if you do not know what discounts are available. Ask your insurance agent what discounts are offered and make sure you are getting all the discounts you deserve.

Even though lowering car costs for teens may not be easy, it is possible. With a little work on your part, you can get both the best car loan and car insurance premium. Getting on the right track from the very beginning can save you untold amounts of money in the future.