As a teen driver, it’s possible to have your own driver’s insurance. Unfortunately, such a policy could be quite expensive, and most teens are not able to shoulder the expense of the responsibility themselves. The good news is that you have options, including staying on your parents’ policy to save money and hassle.
Should You Be on Your Own?
While it’s tempting to want your own insurance policy to prove independence and responsibility, that simple fact is that is costs much more to buy your own policy. The reason it’s so much more expensive for teens to have their own policy is that insurance companies consider them at high risk for having an accident–and they charge for policies accordingly.
If you’re a teen looking for autonomy and responsibility that you can afford, we recommend asking to remain on your parents’ policy and paying the difference between what they were paying in insurance and the money it will take to add you as a driver. This will allow you to still shoulder the weight of paying your own insurance without that weight being too crushing to bear.
Why Else Should You Be on Your Parents’ Policy?
There are a few other reasons that teens will pay less to stay on their parents’ policy. Perhaps your parents are willing to cover your insurance costs, and if this is amicable to you, it’s a great way to save money. Also, your parents already have a history with their insurance company, and the company is likely to see them as reliable and responsible for this reason, which means they may offer teens lower rates on the basis of their parents’ driving records and payment history. Also, teens on their parents’ policy are often seen as lower risk because the insurance company assumes that the parents will be monitoring their child’s driving habits closely, especially since any reckless driving could affect the amount they pay toward their policy. This again makes teen rates lower on parents’ policies. Finally, the more people are on an insurance policy, often the lower the rates for everyone (not to mention you can split the cost with your parents). There are even discounts on insurance for adding multiple vehicles or drivers. Talk to your insurance company about this option!
Cut Your Costs Even More
Even if you remain on your parents’ policy, there’s a good chance that you’ll be paying more for insurance than you like. There are additional ways that you can cut your policy costs. Here are just a few discounts that may be available to you:
- Discounts for taking a defensive driving course
- Good student discount (for having good grades; talk with your insurance agent about what qualifies as “good” grades if the company offers this type of discount)
- Good driver discount (for you and/or your parents)
You can also talk to your parents about bundling their car insurance with homeowner’s insurance, etc., to lower costs. Or, you can ask your parents about increasing their deductible (as long as they can afford it!) to lower monthly payments. Finally, ask your parents to reevaluate the type of insurance they have. You may or may not need comprehensive and/or collision coverage on the car you drive, and having liability only will greatly reduce insurance costs. Consider driving the cheapest car to insure on your parents’ policy, if they will allow it.
Getting insurance as a teen is expensive, but it’s still something that you’ll need if you plan on driving. It will certainly save you money to remain on your parents’ policy, but even if you are unwilling or unable, talk to your insurance company about discounts for which you might be eligible!
After talking with your insurance company, get started saving money with one of these great online driver safety courses from ApprovedCourse.com!