How to Get Lower Rates on Teen Car Insurance

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Just because your teen has car insurance doesn't mean that insurance will be sky high. Get lower rates on teen car insurance with help from a fee-based insurance and risk management consultant in this free video clip.

Part of the Video Series: Auto Insurance
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Video Transcript

Hi, I'm Dan Weedin. I'm a nationally recognized insurance consultant and today we're going to talk about how to get lower rates with teen car insurance. As a Dad who had two teenaged drivers, I'm well aware of what the cost can be for your insurance premium when you start adding teenaged drivers. Teenaged drives have the best reflexes then, then all of us, however their experience, their lack of education and just fear, sometimes cause accidents and a whole bunch of bad things happening. That really have an impact on your insurance. So here's some ways that you and your teen can help reduce that insurance premium. The first and easily the most impactful is grades. When an insurance company looks at you they look at your background and they look at your experience driving. You can't do that with a teen so the only way that you can look at responsibility is based on grades. And so if your teen gets a good grade point average and good as far as insurance companies are concerned is higher than 3.0. If your kids get an higher than 3.0 grade point average, they're going to get a significant reduction on that premium, as much as 35 percent. The flip side is if you have a student that has less than a 3.0 grade point average, the insurance rates go up substantially. I cut a deal with my daughters, they were allowed to drive, but they had to have a 3.0 grade point average and above, in order to get the good student discount. I'm not telling you what to do with your kids, but I'm telling you that grades make a huge difference. When it comes to rates and your teenaged driver. The other thing that makes a difference is experience. Plain and simple, get your kids out driving with you. Just taking drivers ed isn't good enough, they need to be more confident behind the wheel and they need to gain experience. Because what happens is if they get into an accident early on, whether it's their fault or not. Red flags go flying all over the insurance company offices and your insurance premium is going to go up. The best thing that I can tell you as far as reducing chances for getting involved in accidents and getting speeding tickets, is by getting them more time behind the wheel with you there. That investment of time is going to come out in spades on your insurance premium. Those are really the two biggest thing because teen drivers are going to happen and the, the, the statistics are what they are. Make sure that have good, make sure that they have a good grade point average, higher that 3.0 and get them the time behind the wheel with you so that you can get them the experience they need to avoid getting involved in car accidents. Oh, by the way here's a bonus tip, make sure that you keep track of how many kids they have in a car. Peer pressure, is peer pressure, we all went through it in those teenage years. The more people that they have in the car, the greater the likelihood that they are going to take a risk that could get them involved in a car accident or get them a ticket of some sort. First of all the most important thing is you want them safe, but if they take a risk and get involved in an accident. The bottom line is that's going to come back and haunt you, not only in your premium, but potentially jeopardize your insurance all together. Again, my name is Dan Weedin. Today we talked about how to save money and reduce your costs on teen insurance. Thanks for watching.


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