How Can You Get Cheaper Car Insurance For Your Teen?

Your teen just got their license. Congratulations are in order for them and you. Not only will they get to enjoy a newfound sense of independence, but you'll also finally be free from driving them to every soccer game and sleepover. Unfortunately, you're also looking at the unpleasant reality of adding a teen driver to your insurance policy.

While insurance companies typically group teenagers into higher-risk categories, there are some steps you can take to reduce the cost of their insurance. These three tips will help your teen experience the open road without breaking your bank in the process.

1. Add Them to Your Policy

Many insurance companies will allow teenagers to have independent policies, although usually only with an adult co-signer. While there are certainly some appealing aspects to making your teen responsible for their own policy, it can also result in higher premiums. It's also worth remembering that you'll still be responsible for your teen's driving since you will have cosigned their policy.

In most cases, it's far cheaper to add your teen to a policy with at least one experienced driver. Your premiums will still go up significantly, but the financial hit will usually be far worse than if they held a policy alone.

2. Don't Buy Them an Expensive Car

It's no secret that high-end cars typically cost much more to insure, and the penalties may be even harsher when dealing with a teen driver. Older, less flashy cars tend to be the cheapest to insure. If you want to research some exact figures, it may be worth looking up a few lists of vehicles that are cheap to insure.

If you're more limited in your purchasing decisions by budget or time, then remember that sedans, station wagons, and crossovers tend to be much cheaper to insure than sports cars or anything with two doors. Likewise, luxury vehicles (even late-model examples) are pricier to insure than mass-market cars.

3. Sign Them Up for Driver's Education Classes

Nearly every insurance company offers a discount for driver's education classes, and some states even mandate reduced premiums for drivers that attend. You may be able to score these discounts even if your teen already has their license. As a bonus, these classes will make your teen a safer driver, reducing the likelihood that they'll find themselves needing their insurance coverage in the first place.

There's no avoiding the fact that insuring a teen is more expensive than insuring an older, more experienced driver. Fortunately, a little planning and care can help keep your premiums manageable even with a new driver on your policy. Contact a local insurance provider to get more tips for finding cheap car insurance.