Any Tips for Lowering Car Insurance Rates with a Teenager on the Policy?

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Any Tips for Lowering Car Insurance Rates with a Teenager on the Policy?

Submitted by: anonymous 06/11/2009 8:50 PM

Any advice for lowering car insurance if you have a teenager on the policy? I pay 160.00 just for my teen and about $70.00 for me and that is for 1 month!

Editor's Note: This question was originally submitted as a comment below the following tip: Want To Save Money On Auto Insurance?

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Comments:

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State Farm has a "Steer Clear" discount if the teenager views a safe driving video (the agents have it) and answers some questions. Most insurers have something similar.

Most also offer a "good student" discount for grades a certain level and above (usually B).
And of course, always ask what else is available!

Posted by anonymous on July 09, 2009 4:44 PM

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Get an Executive Membership at Costco! It is the best $100 we have ever spent! Executive members get huge discounts thru Ameriprise insurance. We saved over $1,000 by switching from USAA. And USAA is one of the lowest. $600 a year less on our auto, and this is with a 17 year old driving. $400 a year less on our home.

And $120 from not having a membership with AAA. Our policy has free towing. We have had nothing but good service from Costco all around. We wish they had come to our area sooner!

Posted by scott on July 10, 2009 9:01 AM

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I have 2 cars and 3 teenage drivers... I put down that I drive each car 50% of the time.. that leaves the other 50% each car is driven to the teenagers. Last year adding the third teen... my insurance went down $25. I think cause the older 2 became 18 as the younger one just turned 16.

Many years ago an agent told me that percentage of use contributed to the high rates that teens pay. If a kid has his own designated car... that cars rates will be much higher than if he drives it 75% of the them.

My kids and I basically switch vehicles every other week.. I have a large van and a minivan.. I want them to learn to handle the larger van, I feel they will be able to drive anything after driving that.

All get good student discounts, and are girls.

Also older cars without loans are cheaper to insure.

Posted by anonymous on July 10, 2009 11:19 AM

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One of the perks for having a "change of life" baby is that by the time she got her driver's license, I was qualified for AARP insurance! She's an honor roll student, so that saves us an additional $20 per month. We insure a 2005 SUV and her Jeep Cherokee (which is as old as she is) for about $122 per month.

Posted by anonymous on July 10, 2009 11:44 AM

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We were able to reduce our rates when our daughter attended college because the car she was driving was primarily operated and garaged in a county with a lower insurance rating. Just contact the insurance company and let them know.

Posted by Steve on July 10, 2009 12:02 PM

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Leave your kids with a driver's permit instead of giving them the full-blown driver's license. Our insurance company did not charge any premium for a driver's permit on the policy. We told our kids that we didn't know if we could afford the additional insurance premium AND the fees for the big church trip next summer. We asked if they would be willing to postpone the driver's license for the year so we could save the money for the trip. They enthusiastically agreed. We allowed them to drive as much as possible with a parent in the passenger seat. Studies show a new driver is much safer IF they have 50 or more hours of supervised driver's training. They got the additional training during the year, went on the church trip, and we saved the premium. Sure it was inconvenient at times, but the teen-bonding time and the safety training were well worth it!

Posted by anonymous on July 15, 2009 8:49 PM

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I found a company that allows you to keep your same policy and pay less for it. The way it works is they show how you can save 10-40% on the collision insurance. Then, by enrolling in their deductible payment plan, you don't have to come out of your cover the cost of your deductible if you are involved in a crash. You pay less for the deductible payment plan than what you save, and you get to pocket the difference. We saved around $350. Their site is: www.mycdrpsavings.com

Posted by Wayne on November 25, 2009 12:58 AM

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