How to Save Money on Your Teen’s Auto Insurance Policy

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As the parent of a teenager, you probably dread the day that they get behind the wheel of a car. Unfortunately, all teenagers should eventually learn to drive, and getting a license is practically a rite of passage into adulthood. However, as their parent, you may be left footing the bill for their insurance until they are able to afford it. Most companies charge a bit more for policies for student auto insurance, but there are several ways for you to make changes and save a bit of money.

Raise Your Deductibles

The deductible on your policy is what you’re responsible for paying before the coverage actually kicks in. If your deductible is considered to be quite low, you’ll make up for this by paying more for the insurance itself. If, however, you choose to raise these deductibles, you’ll be lowering the payments every month. Just remember that by lowering your policy’s deductibles, you are then left to pay this amount before your coverage will actually benefit you. Check out the options with Alberta Car Insurance.

Change the Type of Car They Drive

Certain cars cost more to insure, regardless of the age of the person who is driving. However, a teenager in a sleek-looking sports car is a recipe for financial disaster. Rather than have your teen drive a sporty vehicle, look for something that is more practical and less likely to be shown off. In general, the more basic the vehicle, the less you’ll pay for its insurance.

Use Monitored Driving

Monitored driving is a relatively new concept that some insurance providers offer. This service allows you to monitor your teen’s speed and driving habits on the road. This information can then be shared with the company itself, which can help to lower payments if your teenager is a good, responsible driver when behind the wheel. It might also help to drive along with them until they are completely comfortable on the road by themselves.

Compare Companies

Not every insurance company is alike, and some simply charge more for their coverage than others. Prior to signing your teenager up for their own policy, it’s a smart idea to do some comparison shopping to see which is the best provider for them. In many cases, you can receive free rate quotes before signing up for an account. This saves time, hassle and can ultimately save you money when you have the ability to see which provider is the cheapest.

Sign Up for Different Driving Classes

Insurance companies like to know that their drivers are responsible and smart when behind the wheel. This especially goes for teenagers who might have recently obtained their license. You should consider signing your teen up for a defensive driving course or other types of programs. There are two main benefits to having your child take these classes. The first, and most obvious benefit, is that they’ll be safer and more able to handle difficult situations when on the road. The second benefit is that you can lower their insurance premiums after showing proof of course completion to the insurance company.

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