How to Get Cheaper Car Insurance for Your Teenager
The day has finally arrived. Your teenager has turned 16 and is raring to get behind the wheel. As a parent, you’re instrumental in supporting your young aspiring driver. The nail biting driving lessons in that empty parking lot, getting them to the DMV for their G1, lending your car for the driving test. This stage of life is a lot on a parent.
In addition to the above support, another common question on the minds of parents is, how can I help my teen to get cheap car insurance? Or at least the best insurance rates possible? Because as we know, young drivers are considered high risk and that goes hand in hand with expensive premiums. So here are some steps you can take as a parent to support the young driver in your house…
Add them to your car insurance policy
This is by far the best way you can help as a parent. A young driver that branches out on his or her own to get an insurance policy will be facing incredibly steep costs. Without a driving record, and the fact that new drivers are inexperienced and more likely to get into accidents or other trouble on the road, insurance companies put young drivers in the high risk category.
By adding your teen to your policy, you allow them the chance to start building up a clean driving record, so that when they do finally branch out on their own policy, they will have some experience under their belt, something that an insurance provider will look upon favourably.
How to add your teen? First off, they must live with you. You can add them as an occasional driver. Learn more here: Insurance Terms Defined – Occasional Driver
Put them through driving school
A driver’s education course is another factor insurance companies take into account when evaluating a young driver. Successful completion of driving school can give your teen a leg up when it comes to cheaper coverage. He or she might have limited driving experience, but they have at least taken the step of educating themselves as much as possible. Something that will get taken into account when setting car insurance rates. Many insurance providers offer discounts to your drivers that have successfully completed a course. Learn more here: Can You Get Cheaper Insurance by Going to a Driving School?
Help them choose which car to buy
When it comes time for your teen to get behind the wheel of their own car, help them with their research of which car to buy. Different vehicles have different insurance rates attached to them and making the right choice can save a lot of money. Learn more in this post: The Vehicle You Drive Affects How Cheap Your Car Insurance Rates Will Be
Consider joint car ownership
If your teen is going the route of buying a car, you could consider joint ownership of the vehicle. Your driver’s record (assuming you’re in good standing) can help bolster the evaluation of your claim and should help your teen get cheaper coverage than going it alone. Keep in mind however that you are on the hook if things go awry. Learn more about joint car ownership in this post: Is It Possible for Two People to Own One Vehicle in Ontario?
Provide insurers with driving usage details
Insurance rates also depend on how much driving is actually happening. It’s always important to disclose all details to your insurer to make sure that you’re taking advantage of all possible cost incentives. So for example, if your teen is going to be driving very infrequently, make that known, whether you’re adding them to your policy or they’re going it alone.
It isn’t easy getting started as a young driver. At the beginning, car insurance premiums will be affected. Make sure that your teenager develops strong driving habits and understands the repercussions of their actions not just on rates, but on the safety of everyone on the road. By building up a clean driving record, your teen will enjoy cheaper and cheaper rates as time goes on.
Resources from the blog:
If you’re a young driver wondering what you can do to get the best rates, check out this post: How to Get the Best Car Insurance Rates as a Young Driver
Wondering about the process of becoming a new driver in Ontario? Check out these posts:
And if you want to learn a little bit more about high risk insurance in general, check out all of our posts on the blog.
If you have a teen in the family embarking on the journey of getting behind the wheel, we’re here to help you get the best insurance rates possible. Click here to get in touch with one of our insurance professionals, or click here to get a car insurance quote online.
Image source: FreeDigitalPhotos.net / David Castillo Dominici