How to lower your teen’s car insurance premiums

If you have a newly-licensed teen in the household, you may be worrying about their introductory auto insurance rates. Car insurance for teens is higher than average mainly for two reasons: Age and lack of a driving record. Fortunately, there are steps you and your teen can take to reduce these monthly premiums.

Selecting a vehicle

The absolute worst cars for teen auto insurance rates are fast, new cars with a lot of passenger room. The speed and value of the car will definitely jack up your premiums while ample passenger seating just allows for more liability in the event of an accident. When car shopping, go with a used car that has a four-cylinder engine. Try to limit seating to two or four, meaning no mini vans or SUVs.

Driver’s training

Once your child is granted a learner’s permit, it would be wise to enroll him in a driver’s education program. If you can present a certificate of completion for driver’s ed to your insurance agent, she may reduce your teen’s premiums. This tells the agent that your teen is serious about being a safe and responsible driver.

High GPA

There are many car insurance companies that will give your teen a discount if they have good grades. A common criterion for this discount is a grade point average of 3.0 or higher. If your teen is a good student, present your agent with her most current report card. If she doesn’t, why not make getting a car the main incentive for better grades?

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