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How to Get the Best Rates for your Teen Driver's Car Insurance

Aug 12, 2013 9:21:00 PM

how to save money on your teens car insuranceProviding car insurance for a teen driver can be an expensive endeavour. The fact is that as new drivers, teens are perceived to be a higher risk for insurance companies. Our brokers hear questions like these on a daily basis: 

  • Why is car insurance so expensive for teen drivers?
  • How can I save money on my teen's car insurance?
Hopefully some of these points will help answer how to make youre teen's car insurance more affordable.
  • Make sure teens attend driving schools approved by the insurance company. There are discounts for passing approved courses.
  • Select a higher deductible, which lowers your premium. Opting for a $250, $500 or $1,000 deductible can save a significant amount. Determine whether you can afford out-of-pocket costs in the event of an accident.
  • Pay for minor damages yourself.
  • Avoid buying teens their “own” vehicle; have them drive a family car instead. The car should be in solid mechanical order, a four-door vehicle and no less than 5 years old (this avoids adding collision insurance). These cars are also less likely to be stolen and do better in crash tests.
  • Keep all cars in parents’ names, because they typically have more assets, which equals lower premiums.
  • If parents have good driving records, add teens to their current policy and pay an increased premium. If parents’ driving records are spotty or they drive extremely expensive cars, it’s best to purchase a separate policy for teens.
  • Only assign teens to one, less expensive car. Do not, under any circumstances, allow them to drive cars that they are not insured for.
  • Check with Armour Insurance to see when we classify teens as adults and, consequently, lower premiums. At this time, check to see if teens should have their own policies.
  • Inquire about our “safe driving programs.” Teens go through the program and sign a contract promising not to drink and drive. Completion of these programs can reduce premiums.
  • Ask Armour Insurance about discounts for teens who go off to university at least 160 kilometres (100 miles) away and do not keep a car on campus.
Rob Stevenson

Written by Rob Stevenson

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