Shopping for car insurance can be confusing. Which company to choose? What plan is best for your needs? It’s a lot to take in. If you’re looking for a policy for your teenage son or daughter the confusion can be even greater. When an insurance company gives you a quote for a teenager’s car insurance, they are looking at a number of factors. What sort of car they will drive is one of the most important, but they will also assess the skills of the young driver and even consider where they live. Car sellers like TW White and Sons understand that some of these are things are beyond your control. But there are ways to get a premium that is below average from your provider, and we have listed them below.
1. The Higher Your Deductible, The Lower Your Rate
A deductible is the currency amount you would pay before your insurance begins to pay for any damage, in the event of a claim. You can choose to have a £0 deductible and have the insurance company pay the entirety of damages or choose a higher amount. With most insurance companies, the premiums will come down in direct comparison to the deductible you choose.
2. Enquire About Available Discounts.
Most companies will give you discounts for multiple policies. For example, if you have a homeowner policy and auto insurance policy with the same company, many times this will earn you a discount. Also if you insure more than one vehicle with the same company they will likely give you a discount. Try getting a quote for your teenager on your own insurer to see if you can get a cheaper rate.
3. Drivers Education
Teaching your teenage son or daughter to drive can be a great bonding experience but if they’ve also taken an approved drivers education class, like those provided by people like the TCC, lower rates may apply. Not every insurance agent will share that information so you should make a list of questions to ask before you call.
4. Teach Your Teenager About The Value Of A Good Driving Record.
A new driver with no current driving record will not qualify for a safe driver discount and they will not be able to get a no claims bonus. Confused.com have explained this in simpler terms here. However, make sure that he or she knows the importance of starting out right and continuing in the same vein. After three or four years of maintaining a good driving record they could qualify for discounts that can end up saving thousands of pounds over a lifetime of driving.
5. Determine the Value of Your Teenager’s Car and Change Your Coverage Accordingly
Do a little research, check online at one of the websites that appraises the value of cars or check the NADA book value, as this is what most insurance companies use. If you find that your car is not worth more than it would cost to replace it or repair damages from a collision, then consider getting rid of the collision coverage and keeping the liability coverage to take care of any damage done to the property of others, or their personal loss. It’s often best just to go for third party fire and theft to start out, moving onto comprehensive coverage when they get a little older and the rates become more affordable.
It’s never easy to find cheap insurance for a first time driver, but with a little digging and by using the tips in this article, you may just be able to make a saving.
Ella Mason, an experienced freelance writer, wrote this article. Ella specialises in providing useful and engaging advice to small businesses. Follow her on Twitter @ellatmason