3 Tips For Saving Money On Auto Insurance When You Add Your Teen Driver To Your Policy

Many teenagers dream of the day they get their drivers license and can have the freedom to drive on their own, but a lot of parents dread the thought of the high auto insurance premiums that are associated with adding a teen driver to a policy. Lack of driving experience and questionable decision making at times will always make teenagers a higher risk to insure, but there are several things that can be done to minimize the cost of the insurance premiums. Use the following tips to help save money when you add your teen driver:

Have Your Teen Enroll in a Drivers Education Course

As a parent, it is important to spend as much time as possible teaching your teen driving skills and allowing them time behind the wheel to practice. But a comprehensive drivers education course is also important to reinforce your lessons and teach valuable rules and laws that pertain to driving. In addition, you can save a lot of money if your teen successfully completes a drivers education course-- many insurance companies give a nice discount on insurance premiums when a teen takes a drivers education course. Either have your teen enroll in a semester of drivers ed at his or her high school, or look for private companies that offer these types of courses.

Make Good Grades a Priority

Good grades are important to most parents, since doing well in high school is essential if your teen wants to get into college. But good grades can also equal auto insurance discounts. There is the thought that teens who strive to make good grades may be more responsible, which can make them a lower risk to insure. Each company has their own rules for this type of discount-- contact your insurance company to ask about the grade point average requirements to qualify for this discount. You will most likely have to submit a copy of your teen's report card or transcripts before the discount will be activated.

Choose the Right Car for Your Teen

Insurance premiums are based on several things, including the value of the vehicles on the policy. If you want to save money on auto insurance costs for your family, it is a good idea to make sure that your teen is driving the right vehicle. Ideally, your teenager should drive a vehicle with high safety ratings that is several years old and does not have a high replacement value. Having a car alarm may also qualify you for a small insurance discount.

Contact an insurance company like ESI Insurance Agency for more information on reducing your premiums.