How to save money when adding your teen to your car insurance

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We all know the fear of letting a teenager behind the wheel. Insurance companies know the feeling. So when adding a teenager to your Oklahoma car insurance, the premium more than doubles, jumping 114 percent on average.

But there are ways to save money on their protection.

Here are some tips from the Oklahoma Society of CPAs.

  1. Ask for discounts. Most insurance companies, especially those that have been insuring your family for years, will offer safe driver, multi-car and good grade discounts. There may be other discounts, but the key is to meet with your agent to find the discounts that work best for your family.
  2. Forgo the sports car. All kids want to look cool to their friends, but insuring a sedan, especially one equipped with safety features like airbags, anti-lock brakes and daytime running lights, will likely cost much less than insuring a souped-up sports car. After narrowing down car choices, ask your agent to for an insurance quote on each model.
  3. Can you skip collision? If your teen drives an older model car, it may be worth it to omit collision coverage because the cost of coverage may be more than the value of the car.
  4. Increase your deductible. Increasing a deductible generally lowers premiums, but be sure the deductible is an amount you can afford to pay out of pocket should an accident occur.
  5. Let your teen borrow your car. Insuring a teen to drive your car as an occasional operator could be cheaper than insuring your teen as a primary operator on another car.
  6. Monitor their driving. Some insurance companies can install a device that monitor’s your teen’s driving habits and reports information (e.g., instances of speeding, seat belt usage, hard braking) back to the insurer. You can also purchase a device that does not report to your insurance provider. (See Consumer Reports “How to Track Your Teen Driver.”)

Also consider liability coverage with your agent. This will provide added protection for the additional friends that will likely be riding as passengers while your teen is driving.

 

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