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Teen Car Insurance: A Cautionary Tale

MasterOfNone | Jul 27, 2009 |

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Let me tell you a story that might seem familiar if you have a young driver in your household. Read along and learn how you can save money on teen car insurance premiums.

Your son has just turned 16, and is all ready to start driving. To prepare for this, you call up your insurance company and ask to set up a new policy for him. Since Junior will be paying his own way, you ask to set up a separate account. However, the rep on the phone informs you that greater savings can be had if you just add Junior to your current plan. Deciding that he will appreciate the savings, you add him to your plan.

Time comes to look for a car of Junior's own. Him being a typical boy, he's trying to figure how he can get the fastest car possible with his summer job savings. He gives you a list of sports cars he is looking at. You call up your insurance company to get some quotes on these cars. Your jaw drops when you hear how expensive these are when compared to the rates you were paying on your old Volvo station wagon. You quickly learn that high performance cars equal high insurance premiums, and you convince Junior, rather grudgingly on his part, that a slower, safer car might be better.

Luckily for you, Junior is quite the student. He studies hard, and gets good grades. You call up your auto insurance provider again, and ask if there are any discounts. "Of course" they say. "We'll add that discount to your policy right now." A good education is paying off already, it seems.

Speaking of education paying off, Junior has been spending his evenings recently in a driver's ed class. Sure, this costs money, but you know that he will be safer after having gone though it. The road is a tough place, and it pays to have all the knowledge you can get. In addition to gaining this valuable knowledge, Junior will also be gaining even more savings on his teen car insurance.

I hope you can see in this story how you can be cutting down on the auto premiums for your young driver. These are simple, straightforward factors that can save you a lot of money when combined together, so take action today.