4 Tips For Saving Money On Your Teen Driver's Insurance

Do you have a teen driver in the house? If so, you've probably seen a spike in your car insurance premiums. Because they lack experience, teen drivers are often viewed by insurance companies as being a sizable risk. That risk is reflected in your premium. There are steps you can take, though, to manage the cost. Your car insurance premiums don't have to explode simply because your son or daughter is now behind the wheel. Here are four steps you and your teenager can take to manage the cost:

Encourage them to do well in school. Many car insurance companies have discount programs tied to a teenager's academic results. The thinking is that teens who do better in school are likely to be more responsible, which makes them less of a risk behind the wheel. You can't control your child's academic efforts, but you can encourage them to do well. Offer to split the savings with them through a financial bonus. When they meet the discount threshold, pass some of the savings on to them. That will keep them focused and will keep your insurance costs down.

Install a monitoring device. Some companies will give drivers electronic devices that can be installed under the car's dash. The device then records your teen's driving habits, such as speed, braking pressure, mileage, and how much time it's on the road. If your teen is a safe driver, that will be reflected in the device's data. Your insurance company would then give you a discount as long as the safe driving continued.

Ask for a distance discount. Is your teenager away at school? Is his or her car just sitting in the driveway? If so, you may not have to pay insurance on the vehicle. Some companies offer temporary remote student discounts. They drop the child from the coverage while he or she is away. When they return for the summer, they're added back on to the policy. The catch is that the child can't drive the car while coverage is temporarily dropped, even if he or she is home for a weekend or short break. However, that inconvenience may be worth it to get the savings.

Put them in driving school. Depending on your state, driving school may be required for your child to get his or her license. Even if it's not, though, it could be a good idea to get your teen enrolled. Many insurance companies offer discounts for teens who take defensive driving classes. If your child has an accident or gets a ticket, you may also be able to avoid an increase in premium by enrolling him or her in a refresher driving class. For more information, contact Shropshire Driving School or a similar company.