How do you make car insurance for teenagers more affordable? The cost of auto insurance after adding a young driver can be anywhere from $1,000 to $2,000 for the year.
Here are a few tips to lower the total amount.
Don't worry about insignificant damage done to the car if the teenager or young adult happens to get into an accident.
If you report the accident to an insurance company the premium on your teen's insurance can skyrocket.
You can easily pay for the cost to repair any part by going to a junk yard and getting a used part.
An oft-mentioned way for young adults to save money is by getting good grades, which would make them eligible for a good student discount.
What makes someone eligible for a good student discount? Although there is no precise definition because it varies from one auto insurance company to the next you can expect a discount if you have either a GPA that is at least 3.
0, honor roll status, or your name on the Dean's List.
You may also get this discount if you got good scores on your PSAT, SAT, or ACT.
You can expect this type of discount to lower the premium on a young adult's insurance by anywhere from 10% to 15%.
The reason car insurance companies give discounts for good grades is because, statistically, those with good grades are more responsible and thus less likely to get into a car accident.
If you increase the deductible on the premium you can be saving loads of money.
Although this is sound advice if you want to save money on car insurance in general, the savings can really ease the burden because the premium for car insurance for teenagers is certainly far from very cheap.