Adding your teenage boy to your family’s car insurance plan raises the premium considerably; many families see their insurance premiums rise as much as 50% to 200%. Insurance companies are aware that teenage boys are high risks, and they increase the premiums accordingly. Statistics support this belief: car crashes are the highest killer of teenagers from ages 15 to 20, and young drivers are more likely to die in a car crash than drivers from ages 25 to 64. Fortunately, there are ways to lower the insurance rate for your teenage boy.
Find out how your insurance company assigns drivers. Some insurance providers assign the most expensive driver of the household — usually the teenage boy — to the most expensive car. This will make your insurance payment very high. If this is true of your family’s car insurance policies, switch to an insurance provider that allows you to assign drivers to cars.
Shop around with different insurance companies to find the best rate. Insurance companies will often vary with their rates; do not settle with your first quote.
Have your teenager drive an older car model or used car. Car insurance rates go up when the insured drives an expensive car, or one with expensive parts, as there are higher theft rates.
Raise your teenager’s grades. Though straight-A students may not necessarily drive more responsibly than C students, many insurance companies offer a 10% to 25% discount to students with an average grade of B of better.
Register your teenage boy in driver’s education. Many insurance companies offer 5% to 10% if he is enrolled in a course.
Take him off the policy when he goes to college. Many college students do not drive while they are at college. However, you must make sure he does not drive when he is at home. This will put your family’s financial situation at risk; if he causes an accident while uninsured, the costs will have to be paid out of your own pocket.