Teen Drivers Are Eligible for Good Student and Other Car Insurance Discounts

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    Do you have a teen driver in your household? Have you discussed with your teen the importance of safe driving? Auto accidents are the leading cause of death among Americans aged 15 – 19, according to the Centers for Disease Control. For this reason, insurers charge higher rates for teens than for any other group.

    Fortunately, most insurance companies offer a variety of discounts that reward teens for being responsible individuals and safe drivers.

    Car Insurance Discounts and Savings Opportunities for Teen Drivers

    • Good student discounts: Good student discounts are common among insurance companies. To be eligible the student must typically be a full-time student and achieve a “B” average or higher in all of his or her subjects.
    • Driver monitoring devices: Many insurance companies offer electronic devices that monitor teen drivers. They measure the number of miles the car has been driven, how fast it has gone, the number of hours on the road and even how often the brakes are applied hard. Teen drivers who meet pre-established safe driving benchmarks are rewarded with discounts on their insurance premiums. Some companies provide a discount just for agreeing to use the device, and then increase the discount amount if certain safe driving goals are met.
    • Safe driving classes: Many insurance companies offer safe driving programs for young, inexperienced drivers. Taking a safe driving class makes the teen driver eligible for an insurance discount. Similar classes are also often offered for adult drivers.
      Older vs. newer vehicles: There are savings opportunities for both older and newer vehicles. Older vehicles often cost less to insure in general, but newer vehicles often have safety features that make you eligible for certain discounts. Weigh your options carefully before choosing a vehicle for your teen driver.
    • Traffic school: If your teen driver does get a ticket, you can minimize the impact on your car insurance rates by going to a DMV-licensed or court-approved traffic school. Often the ticket will be dismissed and your insurance company notified upon completion of the class.
    • Adding a teen driver to your auto insurance might mean adding another vehicle to your policy as well. Multi-vehicle discounts are usually available if you insure more than one car with the same insurance company, and the amount of the discount typically increases with the number of insured vehicles. Your teen driver might also be eligible for a low mileage discount if he or she only drives a minimum number of miles per year.

    Above all, we need to teach our teens about the importance of safe driving habits, staying focused and avoiding distractions while they are behind the wheel. It can literally save their lives.

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