Car Insurance For Teenagers
When a teen finally passes their written and driver’s examinations at the DMV a whole new world of opportunity is opened up. Solo car rides or drives with friends to burger joints, movie theaters and almost any location are now only a set of car keys away. However, with that freedom can come a substantial cost in the form of car payments and auto insurance. In fact, one study conducted by NerdWallet showed that family car insurance goes up roughly $1500 per year when a teen gets added on the auto insurance plan! Ouch! So what is the best way to keep car insurance for newly licensed teen drivers as low as possible so parents don’t go broke trying to keep up with rising auto insurance rates?
GPS Tracking Systems For Cars
Auto insurance providers are data driven businesses so they are fully aware that teen drivers are for more likely to engage in risky driving behaviors such as speeding. They also understand teen drivers can easily succumb to peer pressure and by doing so make unwise driving decisions. Lastly, car insurers know teens can be careless which can result in potential auto-theft. However, one piece of technology called the GPS car tracker can help reduce many of these liabilities. For example, when a parent equips a vehicle tracker on a teen’s car, that parent will then have the ability to monitor everywhere that teen is going and how fast they are driving. What’s even better is that the real-time GPS units can also send out alerts to notify parents if the vehicle was stolen or if a teenager is driving their car too fast! Many auto insurance companies recognize the benefits associated with GPS vehicle monitoring and will provide discounts on car insurance packages for this. However, the GPS auto tracking technology is more than just a tool to reduce car insurance rates for teens because the devices can literally save lives.
The best car GPS tracking devices will cost parents around $99.00-$199.00 per device.
Car insurance companies study the facts and they know firsthand that teens that perform well in the classroom are statistically more likely to perform well on the road. In fact, many insurance providers will offer anywhere from a 10-15% discount on auto insurance for teens who maintain a “B” average or better in the classroom. Therefore, parents that keep their kids focused on the schoolbooks will also keep more money in their pockets.
Professional Driving Courses
In every facet of life the one constant is that experience matters. Therefore, teens who go the extra mile by enrolling in various driving programs and professional driving courses are often rewarded by auto insurers with discounted rates.
Shop, Compare And Combine Insurance Plans
Shopping around and comparing quotes is always good advice, but combining insurance plans can also help reduce rates. Family plans where the entire household is on one coverage policy are shown to save families sometimes as much as $3,000 annually! So combine those insurance plans and shop around to find the most cost-effective option!
Auto insurance is not only the law it’s also extremely beneficial, especially when/if bad things occur. However, that does not mean that auto insurance for teen drivers should break the bank. Parents can save some cash on their teen auto insurance by investing in GPS tracking systems, inspiring their kids to do better at school, enroll them in professional driving courses and of naturally shop, compare and combine auto insurers. Stay safe while driving and always try and save some cash!