"Teenage driver" is a phrase that strikes fear into a parent's heart. This fear stems from teaching your teen how to drive, which leads to freedom and driving on their own. It also comes from your auto insurance premium increase when you add a teen driver to your policy.
Learn about adding a teen driver to your policy and some companies that offer discounts on auto insurance.
Saving on Your Auto Insurance through Discounts
Adding a teen driver to your auto policy will add to the cost of your insurance premium. However, it doesn’t have to break the bank. Some auto insurance offers some safe driving discounts to teens who complete a teen driving course. Others offer discounts to teens and students that maintain good grade averages. You might even find companies that use both driving courses and good grades as discounts.
These discounts can help you afford the extra expense of adding a teen to your auto policy. You might also be able to combine other insurance policies or bundle your insurance to lower your costs. Check with your insurance agent to find out if there are other strategies you can use to reduce your insurance premiums.
You may think about looking for another provider. You might be able to find better prices with another company for your whole family. If you do shop around, keep in mind that the cheapest policy is not always the best deal. You have to consider the coverage you are getting, the price you pay for it, and the insurance company's reputation.
Companies Who Offer Teen Safe Driving Discounts
Here are some of the various safe driving programs and discounts from leading auto insurers.
AAA Insurance has a teen safe driver package that could save you some money. In addition to the discounts, they offer a program to guide you through the process of teaching your teen to drive safely. The program is called Keys2Drive. With this program, you can get access to web videos that teach safe driving. You'll get a newsletter with safety tips and traffic safety alerts. There is also a "Parent-teen agreement” that you and your child sign.
The Parent-teen agreement deals with the responsibilities of safe driving along with other helpful, safe driving resources.
AAA also offers access to an app called SMARTtrek that tracks driving habits. The information can help teens and parents analyze driving behaviors and deal with any problem areas. In addition, a 10% discount is applied to your teen's insurance, which can go up to 30% when you renew the policy.
AAA also provides access (for a price) to an online, eight-hour course called teenSMART that can add another 24% discount to their plan.
Nationwide Insurance offers good students a discount on auto insurance. If your teen or young adult (ages 16-24) averages at least a "B" in school, you get a discount when you add them to the policy.
Nationwide also has a free program called SmartRide, which gives you a 10% discount when you sign up. Any driver with Nationwide auto insurance can use this program. A device is installed in the car that gives you driving feedback and analyzes your driving. It monitors hard braking, acceleration, night driving, and distance. If it's in the car your teen drives and they drive safely, you could see a discount of up to 40%.
Allstate is another well-known provider that has discounts for teens and students. If your college student maintains a "B" average in school, they get a Smart Student Discount. The Resident Student Discount exists for students who attend college at least 100 miles from home and don't take the car.
Bundling your insurance with one provider is a great way to reduce your insurance costs, even with a teen driver.
Allstate also provides access to teenSMART. When drivers under the age of 25 complete the course, you'll receive a discount for them.
State Farm has several options that can help reduce the bill after adding a teen driver. Good students with a "B" average get you a discount, as do any other driver training your teen might have taken.
If your college student is at school, and the car is only used while they are home during breaks, a discount is offered until they are 25 years old.
In its "Steer Clear" program, State Farm has five training modules. The modules have lessons, videos, and some quizzes. Your teen is then asked to drive at least 10 trips with a mentor that totals five hours of driving time. Friends or family members can be a driver mentor and use the app to enter driving progress. Once the program is complete, your teen gets a certificate that you can send to your agent for a discount.
State Farm also says you might be able to reduce your insurance bill by making sure the car your teen drives has the latest safety options and is a less expensive model. A car with a higher rating from the Insurance Institute for Highway Safety may reduce your premiums.