Baca Juga : How to Reduce Car Insurance Cost For Teens
It costs a lot in terms of premiums for every teen who is driving. Though they are the highest premiums payers there are ways one can be able to reduce these costs. Hence, for a teen, any slight reduction in their premiums means a lot and matters to them. But to be able to know how to reduce car insurance for teens and do so may require some sacrifice on their part. Some of these will be lifestyle decisions such as choosing a cheaper car over a flashy one.
Adding an Experienced Person to Your Policy
One may not be an insurance expert but you may know how to reduce car insurance costs for teens by being able to consult insurers or searching for information online. Having an experienced driver who is often older and past the 25 year old as a named driver in your policy can be able to get you a premium reduction. This is a legal manner. Now, there are those who try to go another way which is completely illegal known as fronting. Fronting means that you have a policy where you have yourself as the named driver and someone else mostly an older person as the main driver while in reality you are the main driver. This has repercussions that can get you in jail or have your policy terminated.
Adding a Teen to the Family Car Insurance
If you add a teen driver to the familys policy the premiums will no doubt rise but they may not rise so much. This may be brought by the fact that you may get generous discounts which though vary according to company and state range from 10 to 15%. This saves more money than if the teen driver had their own separate policy. If you choose this option it is advisable to encourage your teen to have a responsible driving conduct. Their driving habits will directly affect your premiums so if they are responsible on their driving that will be to your advantage. It will also be to them as their risk profile will reduce with time as they continue being accident and incident free on the road.
Signing a Driving Conduct
Signing a contract is often in business deals. But there is also another way to know how to reduce car insurance for teens, by signing a driving contract. One may wonder what it means and what are the things you agree to do as well as the benefits. Once you sign this contract you have agreed to be a safe and responsible driver. You will pay all parking tickets or traffic tickets that come your way, wear safety belts at all times as well as well as not texting or while driving. In exchange you are offered a discount as an incentive. Well, every company has their own discount package for their teen drivers. Being smart in school can help you reduce your premiums as insurers reason that you are more likely able to follow traffic rules and regulations. They have to regularly check your grades so they can determine the discount that they will give. But often they start giving discounts to those with a grade point average of 3.0 and above.
Compare Rates
This is the final step that you must follow in order to obtain a cheap plan. With the increasing number of insurers the competition is also increasing and it is great opportunity for customers to get discount from the insurers. You can compare rates of several companies before choosing one, it will actually help you to get good deal and will also help to save money.
