How to Get Cheap Auto Insurance for Teenagers

By Nicki Howell

  • Overview

    Purchasing car insurance for teenagers can be expensive. And this is especially true if they're driving their own vehicle. But there are steps you can take to shave off costs, such as cashing in on good driver and multi-car discounts. Plus, if your student excels academically, you may get an additional price cut. But before shopping for auto insurance, it's helpful to have a plan. Here's a guide to purchasing cheap auto insurance for your teen.

    • Step 1

      Choose an insurance friendly vehicle. Insurance companies don't like to see teenagers in fast, sporty vehicles--so if you're buying a car for your teen keep this in mind. You can even choose a couple perspective vehicles for your teen, and ask your insurance agent to let you know which is cheaper.

    • Step 2

      List your teen as a driver on your vehicle. If you want to save money on auto insurance for your teen, make them use the family car. This will cost you about $40 a month compared to $200, which makes a huge difference.

    • Step 3

      Cash in on extra discounts. This includes discounts for good grades and, and once you're teen drives a while, accident free discounts. Also, have your teen enroll in a driver safety course which could knock an additional 10% off your policy premium.

    • Step 4

      Compare insurance company rates. In most cases, it's cheaper to have your teen under your policy. However, if you have expensive insurance because of accidents or tickets, consider shopping for an individual policy for your teen. Progressive Insurance (see Resources) offers cheap insurance for new drivers, and also provides an instant comparison to other insurance companies.

    • Step 5

      Ask about Trip Sensor. This is a devise insurance company's offer which tracks your vehicle's mileage and speed, and can save you about $100 a year on your premium.
    • Skill: Moderate
    • Tip: Install theft protection devises in your teen's vehicle. Installing simple devises, such as a car alarm can save you an additional 10% on insurance premiums. Plus, many of these devises are equipped with GPS--not a bad option for a new driver.
    • Warning:
    • Be prepared to pay two months of premiums in advice. When starting a new policy, this is often required.

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