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How Parents Of Teen Drivers Can Save Money On Auto Insurance

Do you have a teenager who is almost old enough to drive? Are you worried about how much your auto insurance premiums will be once they start driving? While having a teen driver in the house can be expensive, it doesn't have to break the bank. Here are some tips on making sure that you get the best possible price on your insurance premium:

Don't be afraid to shop around: Many people keep the same auto insurance year after year. Unfortunately, these same people may be wasting money by staying loyal to the same company. If you've never switched insurance companies before, you may not be aware that some companies may offer special rates and incentives to new customers. Shop around, considering multiple companies like Ahlquist Insurance before settling on one.

Pay for additional driving classes: You may think that you're saving money by not paying for your child's driver's ed class and instead teaching him or her on your own, but the opposite may be true. Instead of paying the school, you could end up paying your insurance company over the next several years. Many insurance companies will give discounts to students who do well in driver's ed or who take additional defensive driving courses. 

Take advantage of your child's grades: If your child gets good grades in other classes besides just driver's ed, his or her report card may make him or her eligible for discounts on your auto insurance policy. If your current company doesn't offer discounts for good grades, this is another reason why you should start shopping around.

Consider allowing tracking: Some auto insurance companies are going high tech in the way that they offer pricing. In exchange for having a monitoring device installed in your vehicle to track things like speed and distance traveled, they may give you a much lower insurance premium. This is especially good if your teenager will be using a second vehicle, but the vehicle will usually be parked on your driveway or in your garage.

Raise your deductible: By raising your deductible to a higher amount, you can save significantly on your auto insurance costs. If you're afraid that your child will get into an accident and you'll be unable to pay for the deductible, simply make sure you have the extra money set aside before you let him or her even get behind the wheel of your vehicle.

Pay for a year at a time: If you can afford it, pay for 6-12 months of auto insurance at one time. Most insurance companies charge convenience fees for splitting your premium up into monthly or weekly payment. In addition, they may also charge payment processing fees every time you pay them. While it can be a hefty investment up front, some insurance companies may even give you a free month for pre-paying several months in advance.

 


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