How to save

How to save

on your Teen Insurance Premium!

How to save on your teen insurance

Believe it or not there are several ways to reduce your teen insurance premiums. And let us get to the point first, so you can save money as soon as possible. Just remember that as long as the kids are living under your roof, you make the rules.

Unfortunately, as soon as your kids are added to the insurance policy, your insurance premium will skyrocket like a ballistic missile, straight up that is. But there are certain things that you can do to help reduce the premiums if you and your child abide by certain rules. Ok let us get to the point then.

The most kept secret is that there is usually little or no premium increase for a driving permit. The second that permit is changed to a driving license, then your premium soars sky high. So try to have your kid renew the permit for as long as possible, that way you can avoid the sudden increase. But it would also help your child even build a driving history, to get some discount after a year of driving experience. This driving experience rule applies in certain States, so you may need to check into that. Sure you will get the usual whining from your child about the permit, but you can take it and enjoy the extra cash in your wallet. You must notify your insurer upon every permit renewal that only the permit has been renewed, otherwise you will be surprised with a stiff premium increase.

If you own more than one car per adult in your household, your teen may be automatically listed as a primary driver, likely of your most expensive car. Report this to your insurance company: "My Son/Daughter is an occasional driver only" and avoid using the word teen to your insurance company. And if you promise that you will not allow your child drive the most expensive car, you can get a discount, but you must stick to the pledge. As for your child's car, make sure that the least expensive one is designated for their driving pleasure only. Also minimizing the amount of miles allowed to drive will also reduce the premium.

Some insurance companies will give you a discount if the child registers and attends a professional driving course, not all schools are recognized by all insurance companies, check with your insurer before you register. Make sure that the insurance company will even provide discounts, if not start shopping even for online insurance companies. Some online insurance companies have been very competitive and it would be worth the 10 minute investment to save few hundred dollars.

Also most insurance companies would provide multiple discounts not only for cars, but also for insuring your home, life insurance as well. Check with your company. Your employer might be part of a group discount as well. Check with your employer and see if you qualify for any further discounts with your employers' insurer. If your employer does not provide such benefit, check with any associations you belong to. Some Credit Unions provide such incentives to become members. It could be worthwhile in some cases to join.

Now there are certain rules your kids must abide by in order to keep the driving privilege. Yes it is nota right to drive, as long as you are paying for the cost of driving. Any ticket for whatever reason, is grounds for absolute driving privilege suspension. No second chances and make that clear, since your insurance company will not provide you with a second chance either.

No other teens allowed in the car when your child is driving. Make that perfectly clear, since other teens tend to distract the driver or have peer pressure to do stupid stunts behind the wheel. Ok and most important, no cell phones or radios allowed. Sure you can not monitor them 100% all the time, but you could remove the radio fuse and have the radio not work period for their own safety.

Remember you are the parent and no matter what rules you set, they will surely be unpopular with the teens. Anyway that is your job to act like a parent. So act responsibly just like a parent in full control.