Ways to Cut Costs on Teen Auto Insurance

Student driverPlacing a teenager on a parent’s auto policy can increase the cost of premiums drastically. However, certain things can be done to get cheap insurance for young drivers.

The first thing a teenager should do is enroll in a driver safety program, Bankrate.com said. While it’s not mandatory in all states to receive a driver’s license, a number of insurance companies will offer a discount if a driving course is taken. It also pays to do well in school; many insurer offer a good student discount to teens who receive good grades.

Another option is using a monitoring device. “When it comes to teen driving, some insurers are getting high-tech by offering discounts for parents who install basic systems … that reads and stores data from your car’s on-board computer,” Rita Colorito wrote for the finance website. “Some pricier GPS-based systems gather real-time driving data and location tracking and include in-car video cameras activated by risky driving, such as sharp turns or sudden breaking.”

Since insurance companies don’t have credit reports or a lengthy driving record to go by, they must use other methods to determine what it will cost to cover a teen such as statistics for this age group and prior profits and losses.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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