Young Driver on Your Auto Insurance Policy? Here’s How to Save

So you have a new driver in the house. The thought of your baby being old enough to drive is hard to imagine and the thought of how much your insurance may go up is terrifying. As an insurance agent and a mother of two teens this has been my reality for the last few years.

Probably the most common question I hear from my friends and clients is: What can I do to make the insurance more affordable? The first thing that I recommend is that when you are deciding which vehicle your child will be driving or a vehicle you may be purchasing, select a vehicle that does not need physical damage coverage. Older vehicles that don’t have a considerable amount of value and vehicles that do not have a loan would fall into this category.

Another way to lower the insurance rate on a youthful driver is qualifying for a Good Student Credit. In order to qualify for a good student discount the driver needs to maintain a 3.0 (B) average and provide proof to the insurance carrier. Often times the Good Student Discount can offer a credit of around 10%.

Most insurance companies offer a discount if the young driver has taken a Drivers Training Course. In California the Drivers Training Course is required if you obtain your license prior to turning 18 years old.

Lastly, if your child has gone away to college and hasn’t taken a vehicle with them, they may be entitled to a Driver Away at College without Vehicle Credit. This credit is applied if the student is going to a college that is over 100 miles from their parent’s home and they will not have a vehicle with them. This credit takes into consideration that the student will be returning on vacations and during the summer but has a large period of time that they don’t have access to a vehicle.

In short, although insuring a youthful driver can be expensive, there are ways to save money. Always feel free to ask your agent to review your policy and see if you qualify for discounts or credits that you may be entitled to.