In order to lower actual rates and maximize your teen auto insurance coverage, you can give your teen a simpler or older car; let your teen keep a good driving record; let him keep a clean insurance record; enroll him to a driver safety education; get your teen a safer car; let him maintain good academic grades; keep the mileage low; keep the car safe; and apply for multiple policies with your insurance company.

Teen auto insurance can cost as much as five times more than the rates for adults.  This is because of the greater driving risk involved in teenagers evidenced by greater number of accidents and higher number of serious injuries and fatalities compared to adult drivers.

Practical Ways to Save on Teen Auto Insurance:

Give your teen an older car

A brand new sports car would make a very nice birthday gift for your beloved teen, but if you want to save to insurance costs, this would not be a smart move.  Remember that one of the factors that make up an expensive car insurance would be a brand new car because of its high book value.  A sports car would also be expensive to insure with its higher horsepower compared to a four-door sedan.  With a stronger car, your teen would tend to drive faster, making it more prone to accidents and damages.  If you are giving your teen an older car model, you can also save by dropping collision coverage.

Good driving record

If this is not your first year in getting your teen a car insurance and he or she had a good driving record, you can ask for a discount from your insurance provider.  Most auto insurance companies give discounts to drivers who have not been issued a ticket or those who have not been involved in any accident since they have been driving.  Remind your teen that it always pays to be a good driver.

Clean insurance record

Aside from having a good driving record, teen insurance costs may also be lowered if your teen keeps a clean insurance record.  It is advisable for him to keep from claiming for very minor car damages from insurance companies in order to qualify for discounts.

Enroll him in a driver safety education

Some states require teenagers to get driving lessons first before he gets a driver’s license.  Aside from this condition, the cost of car insurance for teenagers may also be reduced if your teen had been enrolled to a driving course before driving his own car, most especially if he had good grades.  The insurance company would most likely give discounts to responsible student drivers who have had lessons to safe driving than to those who have not.

Get your teen a safer car

Just like in applying auto insurance for adult-driven cars, discounts also apply to teenager-driven cars with safety features.  Airbags, anti-lock brake systems, and alarm systems can help lower the insurance cost of your teen auto insurance as they reduce risk for injuries as well as theft and damages.

Maintain good academic grades

Yes, indeed.  If your teen proves to have good grades in school, most especially if he is in the honor roll, you can avail of the good student discount.  Most insurance companies offer this incentive to responsible students who are most likely more sensible and responsible too when it comes to driving.

Keep the car's mileage low

When you ask for online auto insurance quotations, companies do ask for estimated mileage your teen has to travel from residence to destination, as well as estimated annual mileage.  As much as possible, advice your teen to keep his mileage low and use the car only when needed.  Do not encourage weekend road trips and the like. Higher mileage leads to higher risk of meeting accidents, thus resulting to higher insurance cost.

Keep the car in a safe location

Another very important determining factor for insurance premium is the place where your teen brings and parks his car.  Insurance companies will be asking where the car will usually be brought and parked.  Is the school parking safe?  Are the places he goes safe enough, too or are there many reported cases of car thefts and damages?  If at home, does he park his car in a covered garage or just outside the apartment?  Of course, the more risky the situation, the higher the insurance cost.

Apply for multiple policies with your insurance company

If your teen’s insurance provider with other concerns, such as life or home insurance, also covers teen auto insurance and you get a policy from them, you may be given a discount on your teen auto insurance for your devotion to their company.  Alternately, you can also apply for the whole family’s car insurance policies in one insurance company and be granted of discounts for each of your plan.  Do not hesitate to ask your insurer about these discounts to save bucks.

Other discounts you may qualify for with your teen’s car insurance include a loyalty discount, if you have been with your insurance company for a certain number of years, as well as a multiple car discount, when you enroll more than one car for your teen.