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Teen Car Insurance: Top 5 Ways to Lower Your Rates

Although it might seem unfair to charge higher rates based on age, it’s actually a matter of statistics. Because teens are young and don’t have much driving experience, they are among the highest risk groups for traffic infractions and car accidents.

However, there are plenty of ways you can save money on car insurance for teens. We’ve listed five of the most common solutions below.

1. Get On Your Parents’ Policy

As a teen driver, technically you don’t need your own car insurance policy; actually, having two separate policies (your parents’ and your own) generally costs everyone more money in the long run. In most cases, paying for one policy beats paying for two policies.

Consider having your parent or guardian add you to their policy, and then take advantage of some of the other money-saving tips below to make sure their new rates don’t skyrocket.

2. Make Good Grades

Lots of car insurance providers offer discounts to students who make good grades (think the A- to B-average range). Usually called good student discounts, these premium reductions recognize students’ hard work and make it easier for teens to get cheap car insurance.

Depending on your car insurance company, you might even be eligible for good student discounts several years after you leave high school.

3. Buy a Safe Car

Driving is exciting, but your vehicle doesn’t have to be. We know it sounds boring, but sensible vehicles with high safety ratings usually earn you lower rates on your auto insurance than expensive, flashy vehicles.

If your parents buy you a car, consider a simple sedan with plenty of safety features. It might not impress your friends, but it will pay off when you get cheaper car insurance.

4. Take Driver Training

Even if your school curriculum or state doesn’t require driver’s education, completing Driver’s Ed is often a way to save money on car insurance.

These courses teach you your state’s rules of the road as well as give you valuable behind-the-wheel experience. Your auto insurance company might even offer an additional discount for taking an extra driver training course. Just make sure it’s one approved by the provider.

5. Drive Safely

Your driving record (a record of your driving history) includes every traffic infraction, violation, and accident in which you’re involved. These incidents appear on your driving record and play a huge role in determining your auto insurance rates.

Car insurance companies see you as more of a risk if you have a less-than-stellar driving record. Furthermore, they can raise your current rates (i.e., the rates you already pay) and even lead to license suspension or revocation, depending on your state’s teen driving laws.

Keeping a clean driving record is vital to your insurance premium and your safety. Practice safe driving each time you get behind the wheel.

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