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How to Save Money on Car Insurance for Teens

In about a month, our oldest child will turn 15. In our state, that means you can apply for a learner’s permit to drive. She hasn’t expressed a big desire to do this yet but I know it’s coming. So naturally I’ve started looking into car insurance for teens to see how much another driver in the household is going to cost me.

car insurance for teensWhat I’ve found is there are many ways to save money on car insurance for teens. There are reasons why your car insurance rates will go up, chiefly because you have an inexperienced driver behind the wheel. Insurance companies are taking on a higher risk of having a payout. Your teens’ enthusiasm for being able to drive coupled with their lack of skill makes accidents more likely.

Short of holding onto the keys yourself, there is no way around paying more on your car insurance with a teen in the house. But you can take steps to lessen the amount of increase. The good news is most of these steps will require the help of your teen. Getting them engaged in the process will go along way in teaching them responsibility. They also might learn some cool financial lessons along the way.

11 Ways to Save on Car Insurance for Teens

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A Comprehensive Look at Auto Insurance and Why You Need It

Today I’m continuing my insurance series with a detailed look at auto insurance. So far I’ve tackled the big giants of health, life and homeowner’s insurance. Auto insurance is no less important and remains an important piece to a well-maintained insurance plan.

auto insuranceThe reason?

You are going to wreck your car and cause damage. In fact, the car insurance industry estimates the average driver will file a claim for a collision every 17.9 years. So a 16 year old with a new license can anticipate having one accident by age 34 and another by age 52 and yet another by age 70.

But auto insurance is not just about recouping monetary loss for a damaged vehicle. There are also people driving and riding around in these cars that get into these accidents.

These people get injured.

Many even die.

The losses you could face from medical bills or the potential lawsuits resulting from these accidents could bankrupt you.

That’s how serious finding the right type of auto insurance is for your financial security.

What Is Auto Insurance?

Just like all the other types of insurance, auto insurance is a contract you agree to with an insurance company. In exchange for a monthly premium you receive coverage from the insurance company in case of an event.

In general, auto insurance offers protection against these issues related to your car:

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