Teenage Car Insurance – How to Save Money

Teenage car insurance can be expensive! Learn how to cut corners and save money while teaching your teen a thing or two!

Learning to drive is one of our children’s final rites of passage. It’s one of the most significant steps that they make on their journey to independence. Once they can drive, they can get out on their own without having to ask for a lift, or borrow money for a bus. They can get to school on their own, and are much more likely to find a part-time job to supplement their income. They are free to visit friends and to go out for the day without their families.

Being able to drive is even more important when our children go away to college. It means that they can visit home easily and that we worry less about how mobile they will be. Driving is a big step toward adulthood. It helps our children to become more independent but also confident and responsible. 

However, if there is one thing that puts teens off driving, it’s the cost. They may want to pay for private lessons and a road test. Then, once they are ready to get out onto the road on their own, they may want their own car, so that they don’t have to borrow yours all of the time, which can be expensive. Even when they are on the road in their own car, there are further costs. Fuel and tax can be costly, and car insurance for a young, new driver, can be absolutely extortionate. 

If you don’t want the costs of driving to put your teen off, but you still want them to be responsible and pay for it themselves, here are some of the things that you can do to help them cut the costs of their insurance as much as possible.

Check Out Good Insurers

Don’t just rely on comparison sites for the cheapest car insurance as not all providers will be on these sites. Take your time to shop around for the best options, and don’t be wooed by big names and brands that you have heard of. Often smaller companies have the best deals for younger drivers. 

Compare the Price of Different Cars

Insurance differs wildly depending not only on the driver but also on the car. Encourage your teen to take the time to compare insurance prices for different vehicles before they commit to one. 

Help them to Find a Safe Car

You certainly won’t want your teen to waste money on a fancy brand new car the first time they get on the road. But the cheapest cars aren’t usually the best option either. They will break down more, they won’t last as long, costing more long-term, and they won’t be as safe. An unsafe car isn’t just a risk to them, and other road users, it is also usually more expensive to insure. 

When looking at cars, make safety your priority, and keep them grounded if they get carried away. 

Become Their Named Driver

Adding an additional named driver to an insurance policy can bring the costs down, as long as they are experienced, have made no major claims in the last few years, and will sometimes drive the car

A parent or sibling can be the ideal choice if they live in the same house and have driving experience. However, adding a named driver who will never use the car just to bring costs down could void the policy, so be careful. 

Check for Extra Charges

The cost of a policy isn’t always clear. Don’t look at the monthly costs and assume that is it. Read the fine print and look for any extras, such as a courtesy car or legal protection, that may have been added and charged for. Try removing some of the extras to see how it affects the price. 

Annual Payments are Usually Cheaper

If they can, paying upfront is usually cheaper than paying monthly. Some parents lend their children the money upfront and get paid back monthly. 

Consider Different Levels of Coverage

What levels of cover does your child need on their car? Do they need comprehensive coverage? Look at the different options from insurance providers, but make sure they understand what the policy protects them for before they sign anything. 

Raise the Excess

The excess on a policy is what you (or your child) have to pay in the event of a claim being made. The higher the excess, the lower the monthly or annual cost of the policy is likely to be. It’s also worth remembering that you only have to pay the excess if you make a claim, and not if someone claims against you. 

How are you saving on teenage car insurance?

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