January 31, 2022
While teenagers react with glee when they get their driver’s license, for parents, it is a time of angst and the specter of higher auto insurance premiums.
Sticker shock is not uncommon when parents receive that first quote for auto insurance coverage, but there’s a reason for those higher rates. Teen drivers are unproven due to their lack of experience behind the wheel, and insurers try to account for this with higher premiums.
And they do so for a valid reason: Statistics show that teenagers are involved in a higher number of accidents with fatal or critical injuries than more experienced older drivers.
But don’t fret. There are a number of ways to help reduce the cost of auto insurance for teen drivers. Here are six of them:
1. Choose an older model car.
Less flash could save you money. Two measures of insurance costs are horsepower rating and the theft rate. Older cars also have a lower book value, which in turn reduces the insurance premium.
2. Consider raising your deductible.
A higher deductible results in lower monthly premiums.
3. Good student discount.
You don’t need to have an honor student in your household to qualify. Teens may still be eligible even if they aren’t at the top of their class, and some discounts carry over to college.
To qualify for Meemic’s good student discount of up 10%, the student would need to attend high school, home study, college or a university full-time, and maintain a B average or higher for all subjects combined. Meemic offers this discount to student drivers up to 24 years old.
4. Reduce some coverage.
Consider dropping collision and comprehensive coverage on older cars that may not be worth much more than the deductible. You may be paying more in premiums than you could ever get back from the insurer, even if the car is totaled.
Whatever you do, don’t cut back on your teen’s liability coverage to reduce your insurance premiums.
5. Buy a safe car.
Your teen’s insurance rates will most likely be lower, and you will be less worried about your child when they are driving solo. You can check vehicle safety ratings at www.iihs.org.
6. Explore multi-policy discounts.
Meemic offers a discount if you insure both your home and car with us.
This information is being provided for general informational purposes only. Meemic Insurance Company does not assume any liability in connection with providing this information.
Discounts and savings opportunities subject to eligibility requirements. Coverage is subject to all policy terms, conditions, exclusions and limitations. Subject to underwriting eligibility requirements. Insurance underwritten by Meemic Insurance Company, 1685 N. Opdyke Rd., Auburn Hills, MI 48326.