Your sweet bundle of joy is ready to join the rest of the population on the big open road. As much as you’d like to be just as excited as them, you’re likely feeling anxious and afraid of this next chapter of their life.
Although our fear and anxiety stem from our babies driving amongst the dangers of other drivers, the costs that come with 16-year-old drivers are also something that has likely added stress. Between the purchase of a vehicle and the insurance coverage of the said vehicle, you’ll be spending thousands of dollars out of pocket.
- Top 8 Tips For Parents: Lowering Your Teen’s Insurance and Vehicle Costs
- Letting Your Teen Drive the Open Road
Top 8 Tips For Parents: Lowering Your Teen’s Insurance and Vehicle Costs
#1 – Parent’s Insurance Plan
In most cases, you’ll save a lot on your car insurance rate if you add your teen driver to your existing policy instead of getting separate standalone coverage for them. The savings can be quite substantial — potentially up to $7,000 a year.
#2 – High Safety Rating
Some vehicles have higher safety ratings, and in return, insurance companies offer savings for choosing to drive cars that are rated safe. Before selecting a vehicle, check with your insurance company and verify what cars they consider to be safe.
#3 – Electronic Tracking Device
Installing insurance-approved electronic tracking devices will ensure that your teen driver is driving safely and avoiding any accident-prone decisions. Insurance companies will track data on the device to determine the type of driver they are and the savings you’ll benefit from toward your premium.
#4 – Safe-Driving Courses
Some insurance companies will offer savings for attending approved safe-driving courses. Not only should you consider this for the savings you’ll see in your insurance costs, but also as a parent it will give you peace of mind that your child might know exactly what to do if a tough situation were to arise.
#5 – Used Over New
Choosing a used vehicle that’s in safe driving condition will save your family thousands of dollars. The sweet spot for most vehicles will be around 3 to 5 years old. Make sure you’re well versed in what to look for when buying a used car and obtain any extended warranties if possible.
#6 – Passing It Down
Another option would be to pass down your old vehicle and invest in a new or newer vehicle for yourself. This is a great option as you’ll likely fully understand the life of the vehicle getting passed down and have more confidence in your child driving that car.
#7 – Fuel Efficiency
Buying a fuel-efficient vehicle and avoiding long drives will save you and your child money at the pump. This is actually why a lot of teenagers end up getting motorcycles, which MotorcycleSafetyLawyers.com states are one of the most fuel-efficient vehicles on the road. Buying a vehicle that will be a big investment to keep running will drain your bank account and be a huge nuisance later on.
#8 – High Grades & Low Commutes Incentives
Check with your insurer on school-related savings opportunities to lower your rate even more. These include a good-student discount, a low-mileage discount if your college student’s commute to campus is minimal, a medical student discount, and a distant-student discount if your child’s school is at least 100 miles away and they use a car only during breaks from school.
If your child can take advantage of public transportation or other modes of commuting while in college instead of driving, car insurance for a car you rarely drive is likely to be much cheaper. Contacting your insurer if you’ve reduced your mileage is one of the great money-saving tips that most people overlook.
Letting Your Teen Drive the Open Road
It’s a scary beginning and you’ll be up all night until you hear your child pull into the driveway, but it’s worth it. To see our children grow up and become responsible drivers is a joyous time as well. Let’s face it: They’ll inevitably get behind the wheel, but our hope is to teach them all they need to know to be the best drivers possible.