Reducing the Costs of Insuring Your Teenage Driver

It's one of the most anticipated days in a teenager's young life -- getting a driver's license. It's one of the rights of passage that nearly every teen looks forward to. Of course, the parents may have some apprehension about it -- after all, they're the ones who usually end up paying for everything. There's the driver's training courses, the testing and licensing, perhaps a second-hand car, gasoline, and maintenance. But there's one more cost that most parents are concerned with the most -- insurance.

Shopping for Insurance

Car insurance for teens is usually much higher than it is for an adult driver with minimal insurance claims or traffic citations. One of the first things a parent or guardian of a teen driver should do is shop around for the best rates. While you certainly want to look at your current insurance company to see what they have to offer, you might be surprised by what other insurers have available. You should shop for the best bargain before your teen needs to be insured for his or her driving permit. When you are discussing insurance with the agent, ask what types of options and discounts they offer that can help reduce the cost of a teen-driver policy.

Lowering Teen Insurance Rates

Most insurance companies offer similar types of discounts for teen drivers. The amount of discount may vary between companies, but the basic concept will remain the same. It's important that both you and your teen driver understand how to lower car insurance and how to keep it that way.

• Good grades. One of the first discounts that insurance companies offer is for good grades. This shows the insurance company that your student is behaving responsibly.
• Driver training programs. This discount is for teen drivers who have completed a recognized driver's training program. These programs teach new drivers how to be safe and responsible behind the wheel of a car.
• Safe driving. Insurance premiums for a teen driver who has an accident or a traffic citation can skyrocket. More than likely, the insurance company will drop them from the policy all together.
• Select a safe car. While most teens seem to be attracted to sporty and youthful vehicles, it's better to find a car that is more conventional. Ask your insurance agent for suggestions.
• Change your deductible. Having a high deductible can help lower the cost of premiums for all drivers, but especially for teenagers.
• Research multi-policy discounts. Many insurance companies will offer reduced rates for people who carry more than one policy with them. Consider asking about combined car, house, and life insurance discounts.

Finding a Reliable Car

Sometimes it is better for a teen driver to have his or her own car. If the only car the teen can use is needed by a parent for getting to work each day, the teen may not have access to a car. Or perhaps the only car available is a high-performance vehicle that the insurance company will not insure the teen driver for. Regardless of the reason, finding a car that is safe, reliable, and appropriate is important.

Unfortunately, not all parents are in a position to buy second vehicle. This is especially true if their credit score is low and they can’t qualify for a loan. If you find yourself in that situation, the first thing you need to do is review your credit report. Knowing where you stand before you ever enter the car dealership gives you a better chance at negotiating with the dealer. Just like you did for your insurance policy, do the same thing with car dealers -- shop around. There are some dealerships that specialize in bad credit car loans.

When it's time for insuring your teen driver, there are many things to consider. By looking for an agent who will offer you the best discounts, you can keep your teen's insurance premiums as low as possible. Keeping credit secure is important so that you can get better car loan deals. When you review your credit report, look for ways to improve your overall rating.

Joy Mali is an active blogger who is fond of writing articles on Bad Credit Loans and advising people to get mortgage even with bad credit. Follow her on Twitter to know more on how to reduce the Costs of insuring your teenage driver.