Because teens 16 to 19 are much more likely to be involved in accidents than drivers over the age of 20, it's not surprising that their insurance premiums are far higher than adults. Adding a teen to your policy could mean a significant increase in your car insurance payments, but there are a few things you can do to help reduce the cost.
Buy the right car. Did you know that midsize family cars are typically the cheapest vehicles to insure? It's because they offer great crash protection and are fairly easy to drive, which improves your teens safety on the road. Choosing vehicles that have won Top Safety Pick titles from the Insurance Institute for Highway Safety is another way to make sure you get a better insurance rate for your teen. Toyota's latest Top Safety Pick winners include the 2014 Toyota Prius, Camry, Corolla and Highlander. We also periodically have used Toyotas in inventory that received TSP titles as well, like the 2012 and 2013 Toyota Yaris hatchback, Avalon, Venza, Sienna, Camry, Corolla, and Prius c and v.
Adjust driver assignments. When calling up an insurance company to add a young driver to a policy, the representative may ask which vehicle each family member will be driving. You can get a lower insurance rate by assigning your teen to drive the car that's cheapest to insure. If you don't know which that is, ask your rep to give you quotes for each vehicle.
Ask about student-alumni discounts. Some insurance companies offer a 5 to 10 percent discount for college students and alumni from certain schools. It may not be a whole lot, but a discount is a discount, so it's worth looking into. In addition, college seniors often get better rates than freshman, so update your rep when your child gains enough credits to be considered a senior. Along with this, some insurers offer substantial discounts for students who live at school and leave their cars at home during the school term, with the assumption that they'll only be driving on vacations and/or weekends.
