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How can you afford auto insurance being a teen?

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Wiki User
10/20/2011

Affording auto insurance as a teenager is rough! Here are a few tips to help lesson the cost of your insurance:

  • Add yourself to your parents policy. You'll benefit from the discounts that your parents are eligible for. Plus they might receive a discount on their auto by having multiple cars in their household.
  • Maintain good grades! Most insurance companies offer you a substantial discount if you maintain an average grade of a B or over.
  • Ask your agent if your insurance company offers any discounts if you take a driver safety course. Some insurance providers even have their own safety courses that you can take on-line.
  • If you have (or get) a speeding ticket, take the drivers ed. class to have it removed off your record! I cannot stress enough how much this helps!
  • If you're looking to buy a car call your agent and have him quote the insurance before you buy! I once had a teenage client buy a new car because he wanted cheaper insurance. The car salesmen told him the vehicle he was purchasing would be cheaper to insure than his current car: It was not. It turned out to be about 500 dollars more a year to insure, plus now he had a car payment to deal with as well.
  • If you're living on your own write your renters insurance with the same company you have your auto insurance with to get a multi-policy discount.
  • And lastly, look into life insurance! This is a trick I've used with some of my own clients looking to save money. A term life insurance policy for a teenager is usually very, very cheap. Sometimes the discount you'll receive having the life and auto policy with the same company will be more than the cost of the life policy, but have your agent run the quote first just to make sure.

Remember to get several quotes with several companies to make sure you find the best rate available to you. Good luck!