How To Mitigate New Driver Insurance Costs

bankAnyone who has had a child of driving age knows all too well the substantial cost surrounding their child’s newfound four-wheeled freedom. Young drivers can be significantly more expensive to insure due to their inexperience. After all, young drivers make mistakes and when driving a vehicle, those mistakes can be costly. With that said, there are a variety of ways to help mitigate the cost of adding your young driver to your insurance policy.

Advanced Driver Training – These types of programs go beyond what new drivers learn in typical driver’s education classes. For instance, ADEPT Driver has developed computer-based software called teenSMART® that is the first driver safety program to identify and address the six behavioral and social factors that cause more than 90 percent of all teen collisions. Teens who participate and complete teenSMART are statistically proven to have 30 percent fewer accidents. While programs such as teenSMART may cost a little, it’s possible that you may qualify for a discount with some carriers if your new driver completes the program. For more information, visit www.teensmartdriving.com.

Good Student Discount – Many insurance companies offer this discount for new drivers who are full-time students. Typically, a student must carry a certain grade point average or be ranked within a particular percentage of their class in order to qualify.  Most carriers require a copy of an official transcript before each renewal in order to add the discount.

Student Away At School – Some carriers offer this discount for new drivers who attend school 100-plus miles away from their home. This allows the policy owner to receive a break on the premium while their new driver is not using a vehicle and is too far away to pop in at random and take the car for a spin.

Low Mileage Discount – While this discount is not specifically geared toward new drivers, it is still worthy of mention. Most young drivers who have their own vehicle “putt around town” and don’t rack up the miles the way a working commuter might. It’s a good idea to keep track of those miles on their car to see if they qualify for a low mileage discount with the insurance carrier.

Although these discounts may not completely offset the financial impact your new driver will have on your insurance policy, they can help take the sting out of that premium increase. Be sure to check with your independent agent to see if they offer these discounts (or any others) that may help keep your auto insurance premium at a reasonable rate. For the parent with a new teen driver, be sure to read the blog post “Sixteen Candles and a Car” for some tips on how you can both relax and enjoy those first glorious days of driving!  Are there any other discounts or ways to save that you know of? Please share in the comments section below.

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