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Financial Guidance Library

Helping others achieve financial success

Financial Guidance Library

Insure your teen driver without breaking the bank.

Having a teen driver can be a scary thing for parents, but it doesn’t have to be a financial nightmare. There are ways to keep insurance rates low while still making sure that your new driver is safe and covered. Keep these few tips in mind to ensure that you get the best deal when insuring your kids.

Better school performance can help reduce rates.
Nearly every insurance company equates higher grades and good attendance with a higher level of personal responsibility in teens. Talk with your teen as early as possible about how their school performance can affect your willingness to insure them to drive.

Provide a safe and reliable car.
Teen drivers’ rates are based partially on the vehicle they drive.
It’s no surprise that a 16-year old driving a new sports car is considered to be a higher risk! An older model sedan or small SUV is a better choice not only for lower insurance rates, but for the overall safety of your teen driver.

Promote safe driving.
Traffic tickets, accidents and parking tickets can all raise rates sky high. Talk to your teen and try to head off unsafe driving from the start. Some companies offer incentives to young drivers such as safe driving “contracts” and pledges not to text while driving.