Learn How to Shop for Auto Insurance for Minors

While experienced drivers might have a good game-plan when it comes to buying car insurance for themselves, finding reliable and affordable coverage for minors may be another matter. Thankfully, if you follow several simple tips, you can learn how to effectively shop for teen car insurance in no time at all.

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Although, on average, minors pay more than any other age group for car insurance, there are several ways teen drivers can lower their insurance rates: compare insurance providers, take driving lessons, get good grades in school, keep a good driving record, drive an inexpensive car, pay a higher deductible, or, when possible, add them to a family policy.

Insurance for Minors

Many minors are safe and responsible drivers; however, statistics show that younger drivers are far more likely than older and more experienced motorists to get in a car accident.

For example, according to the Centers for Disease Control and Prevention, drivers aged 16-19 years old are four times more likely to crash than other older motorists. Statistics also show that minors are particularly at risk to cause an accident during their first year of driving.

According to the National Highway Traffic Administration, some of the leading causes for accidents among young drivers include inexperience behind the wheel, distracted driving, and drinking alcohol and driving.

As a result, insurance companies view minors as high risk drivers, and charge them higher premiums. The more likely a driver is to file an insurance claim, the more a provider will charge to offset their potential costs.

Compare Providers

You can learn a lot about auto insurance for minors and the rates they pay by researching and comparing the major providers. While it may eat up a little bit of your spare time, it will be worth your while to find the best insurance premiums possible.

Even if you’re happy with your current provider, it doesn’t hurt to take a look around and see if there’s a better deal elsewhere.

Many companies will match the competition’s price in order to gain customers.

While you can get insurance quotes for minors by calling the major providers directly, you can also contact an insurance expert at your bank, or an independent insurance broker.

Many people find great deals by searching online and using websites that specialize in car insurance rate comparisons. That way there’s no high pressure sales environment and you can do so from the comfort of your own home.

In addition to finding the best policy rates, it’s also a good idea to do a little research about each major provider, and see if their customers have been happy with their service. Just because a company might offer a low price, doesn’t mean that they provide a good product or are easy to deal with.

You can find out more about a company by searching online or by referring to the Better Business Bureau.

Of course, while you research the major providers, it’s also important to consider what kind of insurance coverage a minor requires for their car. Due to the fact that many teens are inexperienced drivers, it may be a good idea to purchase additional coverage for them.

While liability insurance will cover the damages to another driver or property a minor might cause in an accident, it will not pay for the repairs to their own car. This is why many people purchase collision insurance for teen drivers.

Other kinds of coverage that many minors purchase include comprehensive and personal-injury-protection insurance. Comprehensive insurance will cover the damages a car receives from an act of nature or a non-motorist, like a hail storm or a break-in. PIP insurance will pay for many costs that aren’t covered by a minor’s health insurance.

While you’re considering what types of insurance to buy, think about how much the teen will be driving as well.

If they’re going to be driving a car daily, and have a long commute to school or work, then buying more extensive insurance is a good idea. If the young driver is only going to use the car occasionally, however, and hardly drives in heavy traffic at all, then they might not need as much coverage. In fact, some insurance companies offer low mileage discounts.

Take Driving Lessons

One the best ways a minor can improve their insurance rate is by taking driving lessons. By taking lessons, teenagers show insurance companies that they are serious about driving responsibly and that they’ve upgraded their driving skills.

Nearly all insurance providers offer significant discounts to minors who have completed driving lessons. If the company doesn’t, you may want to move on to one that does.

You can locate driving schools in your region by searching online or by using websites like U.S. Driving Lessons. Lessons may be an extra expense initially but, in the long run, the driving experience and discounts a minor will gain from them will be well worth it.

Get Good Grades

While it may not seem like any obvious thing to ask an insurance company, be sure to ask whether they give discounts to students with good grades.

Studies show that students who perform well in school are more attentive to the rules of the road, and are less likely to take risks than teens with poor grades. As a result, many insurance companies offer discounts to minors who excel in school.

While the requirements vary from company to company, typically, students with a “B” average overall will qualify for a discount on their car insurance ranging from 10% to 20%!

Some providers may even offer a larger discount to students who are on the honor roll or Dean’s list. Usually a student must be enrolled in school full time to qualify for the discount.

In order to get the discount, most insurance companies will ask to receive a copy of a teen’s report card or academic transcript. Some providers also give discounts to minors who have performed well on standardized tests like the SAT.

If you’re a teen with great grades, or a parent of a top student, you could save some serious money on car insurance by just asking about a student discount!

Add Them to a Family Policy

Before you begin shopping for a minor’s own car insurance, you might want to consider adding them to the family’s policy if possible. If you’re a teen of a parent who has a clean driving record, then it may be cheaper overall to add them to your policy, rather than buying them their own separate policy. This makes a lot sense for minors who are going to be using a family car anyways.

If you’re a parent who has really bad driving record, however, then your teen may be better off buying his or her own policy. Of course, this depends on the insurance coverage you have and what kind of car your child drives.

Keep a Good Driving Record

If you’ve caused a car accident or have received several speeding tickets, then you’ve learned the hard way that a bad driving record is not good for your car insurance rates. Because insurance providers already consider minors to be high risk drivers, if they get caught driving recklessly or cause an accident, then their insurance premiums could rise dramatically.

In other words, not only is it a good idea for minors to be safe and attentive drivers for their own well being, but it will also save them a lot of money on car insurance.

Drive an Inexpensive Car

If you’re having trouble finding affordable coverage for a teen driver, the kind of car they drive could be a big reason why. Minors who drive expensive cars are particularly costly to insure, because the more valuable a car is, the more it costs to repair.

As many high priced cars are also very fast, insurance companies see teens driving them as extremely risky. Flashy cars are also more likely to get broken into or stolen, which is another reason that providers will charge a minor a lot more to insure them.

Finding car insurance that fits your budget will be much easier to do if it’s for a less expensive car.

In addition, if the car is particularly old, then you may not need to purchase collision insurance for it. Remember, however, that insurance companies also like cars that are equipped with modern safety features, as they’re not as likely to be involved in a serious accident. So, an older car is not always the safest and best way to go.

You can find out more about which cars are more expensive to insure by referring to car related websites like AutoBlog.com.

Raise the Deductible

Another great shopping tip is to pay a higher deductible and lower the minor’s car insurance rates. The deductible is the amount of money you agree to pay for damages anytime you file a claim with an insurance company.

For example, if you agree to pay a $200 deductible, you will have to pay $200 towards the damages from an accident while your provider pays the rest.

The higher the deductible is the less an insurance company has to pay towards the overall cost, and the lower the premiums will be. This is only a good option if you or the minor can afford to pay the deductible when required.

If money’s tight, it might be a good idea to set aside funds for the deductible just so it’s there if you need it.

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