Sitting behind the wheel of a car for the first time is a right of passage for many teenagers. The freedom that comes with driving a car is something unlike anything else most teenagers have ever experienced. Of course, as parents, you are probably both proud and worried for them at the same time, all while looking at your pocketbook and wondering exactly how much the new driver is going to cost you. While the insurance rate of your teenager is going to be higher than yours, there are a few ways to lower your teen's insurance rate and get it under control:
Put Your Name on the Title
For starters, you don't want the car title's name specifically in your teen's name. Even if it is a gift to them, this is not a good idea as insurance for a teenager who has essentially no driving experience is astronomically high. However, if you have yourself listed as the main driver and the teenager as a secondary driver, it reduces the rate of insurance, yet still covers the car when they are driving.
Give Them an Old Car
While giving your teenager a brand new car is desirable from a gift standpoint, it is not from an insurance standpoint. Instead, you want to let your child drive a vehicle that is several years old. Generally, if a car is five years old or older, it is an excellent car for a new teenager driving a vehicle. The insurance is already going to be low on this car, so it helps you save money. Also, opt for a popular car, such as a Ford or Toyota. This way, the parts are prominent and less expensive, which in turn drops the insurance price.
Keep up With Their Grades
Sure, good grades are excellent for helping your child reach their college goals, but it also helps you save money. Most insurance companies provide good student discounts, which means if your student maintains a B average (typically), their insurance rates are trimmed down. If you ever had a reason to harp on your child for their grades, this is it, as every time their average falls below that B marker, it will cost you money.
Maintain Your Own Driving Record
Fair or not, many insurance companies take your own driving record as a possible reflection on your child's potential driving habits. If you are free of any sort of major traffic violations, your child is not going to be charged a premium. However, if you have been cited, or even arrested, for major traffic crimes, it not only is going to cost you more for your own insurance, but there is a greater likelihood of your own child being charged more for their insurance coverage as well. Due to this, you need to maintain your own driving record, as this should help you save money on your and your teen's insurance rates.