How To Keep Costs Affordable When Adding A Teen To Your Auto Insurance Policy

Adding your teen to your auto insurance policy can cost more than you would like. Teens, after all, are considered risky drivers, and you really can't fault the car insurance companies for charging more to insure them for this reason. However, as a parent, you are probably on the lookout for ways to save when adding your teen to your policy. Here are a few ways to save.

1. Have your teen take driver's education classes.

In most states, teens can learn to drive just by getting their learner's permit and driving around with another licensed driver in the vehicle. But if you want to save money on car insurance, this is not the best way for your teen to learn to drive. Enroll them in a driver's education class, either through their school or through a community organization, instead. At driver's education classes, they will learn to drive from a trained instructor, which means they're more likely to learn great driving skills from the start. This makes them a safer driver and one that your insurance company won't charge as much to insure.

2. Buy them a cheaper, older car.

The cheapest way to add your teen to your car insurance is usually to list them as a part-time driver on your own vehicle. This way, you are not adding another car to your policy, so the rate won't go up as much. 

However, if your teen does need their own car to drive, you can save on insurance by buying them an older, less expensive car. The less the car is worth, the less the insurance company will charge to insure it. You may not want them driving around in a $500 clunker, but a $5,000 car is definitely a reasonable middle-ground choice over a newer, $20,000 car.

3. Send in their report card.

Most insurance companies offer a discount for students who maintain good grades. Depending on the insurance company, they might need to maintain a B or a B+ average. The insurance company figures that if a teen is responsible with their school work, they are probably responsible behind the wheel, too. Encourage your child to maintain good grades, and send a copy of their report card in to the insurance company as proof.

Insuring a teen is always more expensive than insuring a mature adult. However, with the tips above, you can keep costs down a bit. For more information about auto insurance, contact a local provider.