How To Save Money When Your Teenager Starts Driving Event

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How To Save Money When Your Teenager Starts Driving

Knowing that your teenager is getting behind the wheel can make you very nervous – and that’s a totally normal feeling. Having a teenager that is driving for the first time means there’s going to be a learning curve and some changes, including to your insurance premiums. Many people will say their insurance increased when their teenager started driving, and there is some truth to that - so you might find yourself looking for ways to curb the added dollars. Here are a few ways to save some money when your teenager gets behind the wheel.  

Enroll them in Driver’s Education 

The benefits of driver’s education are twofold: there is an instructor giving your teenager information on how they can be a safer driver and, when your teenager graduates from the program, you can actually save money on insurance. Most insurance companies will ask, when you add them as a driver, if they have completed any kind of driver’s education program. If they have, the insurance company may see them as less of a risk when driving and it can save you some money. Note that only ministry approved driving schools are accepted by insurance companies,  so be sure to check with the driving school and make sure they are accredited with MTO.  

Don’t buy them their own car 

While it may be tempting to purchase an older car for your teenager to drive to school, to their job, and to visit their friends, this might end up costing you more in insurance. If they have their own car, they will be a primary driver instead of a secondary driver and that will result in higher insurance premiums.  

Keep your teen on your insurance policy 

Resist the temptation of having your teenager get their own insurance policy. It will be much more affordable to add them to your existing insurance policy and let them build driving experience there before they go out on their own and get their own policy.  

Change your insurance policy 

If you find that adding your teenager to your insurance policy increases your premiums more than you’d like, you can talk to your insurance broker or advisor to either adjust your deductible or coverage amounts. By changing these two items, you can decrease your premiums every month.  

Enroll with an insurer who uses telematics technology 

Today, more and more insurance companies are offering customers the ability to earn their own price and rewards good drivers by offering a telematics program. This program is one where you install an app on your phone and it monitors your driving behavior. For those who score well, significant discounts are applied (up to 30%).  This program typically monitors distracted driving (I.e. texting or talking on the phone while in motion), acceleration speed & hard breaking events.

Shop around 

The current insurance provider may not give you the best possible rate on insurance when you add your teenager to the policy. It’s ok to shop around and see what else is out there.  

You may find another insurance company that gives you a much better rate, including your teenager, than any other company does. You will also need to take into account what kind of coverage comes with each policy to make sure you are getting the coverage you want at that price point.  

The day your teenager gets their license can be really exciting, but it’s also scary as you know how nervous anyone can be getting behind the wheel for the first time. You want to do everything you can to help them learn how to be safe on the road when you aren’t with them. There are ways to keep your teen safe and your insurance premiums low, so you don’t have to stop your teenager from driving when they want to.  

Contact ICD Insurance today  

Do you have a teenager who is about to or has recently gotten their driver’s license? If so, contact ICD Insurance today to learn how we can help you save money on your premiums.