Cutting the Cost of Teen Driving
Teenage driving has become very expensive. As parents, you have the cost of gasoline, auto insurance not to mention wear and tear on the car which requires maintenance. No doubt, having a teenage driver in your home is expensive.
There are many ways that you can cut down the cost of teenage driving. Most auto insurance policies give discounts if the teenage driver meets certain criteria. It's a good idea to check with your auto policy on these deductions and see if your teenage driver qualifies for any of them.
With the unemployment rate so high and gas prices rising along with inflation, parents are looking for ways to cut the costs associated with teens driving on the road.
A recent study indicated that parents spend approximately $3100 a year on their teenager driver. Clearly, this is a major expense.
The same study shows nearly two-thirds of parents pay all costs associated with their teenager, including gasoline, maintenance and auto insurance. The remainder of the parents share the costs with their teenager, or require them to pay for the majority of all costs.
Many carriers offer discounts for teenage drivers who excel academically. The thinking behind this discount is that if a teenager has responsibility in the classroom it will carry over to the road and driving. Some companies actually offer a 25% reduction in premium for drivers under 21 who maintain a B average or better.
Teenage drivers who have completed a driving certification program will usually earn an insurance premium reduction.
Check to see if your insurer provides a family plan that provides discounts to teenagers in the household that are earned by the adults. For example, does the family's auto insurance plan that includes multi cars, multi policies (home, life and auto), and financial responsibility discounts? If so, you could earn up to a 25% reduction on your auto insurance premium.
You may also choose to have a higher deductible on your auto insurance premiums; the higher your deductible the lower the premiums. Keep in mind you will need to be able to afford the deductible should the need arise.
And finally, lots of insurance companies will give you a deduction if you pay your premiums electronically.
To find out about these and other discounts and ways to save on teenage driving, visit our learning center.