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Turning sixteen for most teenagers will mean getting their driver’s license and becoming one of the many drivers on the roadway. As a parent of a teenage driver there are many concerns that will be involved in this big step and one of them will be purchasing auto insurance. Letting your teenager drive your vehicle can be frightening enough, but just imagine if you have to wonder if they have sufficient auto insurance and if you chose the right company. Basic auto insurance tips have been compiled here to help you to not only make a smart decision, but also for ways to possibly save money.

Compare Options; New Policy or Add to Your Current Policy

Decide if you should add your teen to your current auto insurance policy or open a separate one for them. There are a few things that you need to consider when you are making this decision. Begin by getting a quote from your own insurance agent to see how much of an increase that you may take on your policy by adding the teen driver. This should be the first investigation to be done to compare your options.

However, if your teen will be also driving your automobile or any of the other vehicles in the household, it is imperative that you add them to the policy regardless of the increased rate. Failing to add them to the policy for your vehicle could cause huge issues if the teen were to have an accident while driving your vehicle or others in the household. If the teen driver has their own car and will not be driving yours at all, then it will be safe to open a new auto insurance policy for them. Complete an online comparison of auto insurance companies if you would like to see if you can get a better rate on your current policy or when opening a new policy.

Encourage Your Teen to Maintain Good Grades

By maintaining good grades your teenager will qualify for a discount that auto insurance companies make available for those teens that show a resolute effort. When these companies are made aware of grade averages, they will apply a discount to the insurance policy. It is normally required for the teen driver to have a 3.0 GPA or higher in order to reduce the premium on your auto insurance. The reduction could be approximately 10% for students just for getting good grades in school. Encourage your teen driver to achieve at least a B average and possibly higher in order to qualify for the good grade discount.

Driver’s Education and Good Driving Discounts

Most auto insurance carriers offer discounts for good driving and for those teens that complete a recognized driver’s education program. Most of the discounts for teen drivers are for showing responsible behavior and by taking a defensive driving course or driver’s education training it will show responsibility, as well as learning safe driving techniques. Obeying traffic laws, using rear view mirrors and understanding how to be a cautious driver will earn your teen a discount with the auto insurance company and can also give you the peace of mind knowing that they have been taught excellent driving skills and safety.

Buy a Dependable Car for Your Teen Driver

Even though your teen driver may want a brand new sports car after they get their driver’s license, it will not be in their best interest or yours. It will definitely not be in your best interest if you are the one that will be paying the auto insurance premium because newer cars have higher value then older ones. That will mean that they will cost extra to repair or to replace and will surely increase your monthly insurance payment. When you buy a dependable automobile with safety equipment installed it could actually lower your insurance premium. Insurance carriers look at the teenagers as being in a high risk category already and it presents an even higher risk with the cost of replacing a new vehicle.

Teach Your Teen Good Driving Habits

Keeping an auto insurance rate low will require good driving habits and a driving record that remains clean. By teaching your teenager that fact it will go a long way in lowering their insurance costs. Rules of the road are taught in driver’s education, but things like drugs and alcohol will need to be discussed with them by their parent or guardian. It may be a bit tough to bring it up to your son or daughter at first, but if you do not discuss the effects of drugs and drinking there could be a terrible consequence of bad judgment.

Lead them by being a good driving example. If they are riding in the car with you and you fail to signal while making a turn, that is telling them that it is okay to do without signaling. As well, road rage and yelling at other drivers on the road will also be a bad influence on how they may act when they are driving. Being a good defensive driver and not being cited with traffic violations is a key aspect of remaining free of flaws on your driving record. This will help you to keep the auto insurance premium down. After three years of clean and accident-free driving, your teen driver will become eligible to receive the good driver discount.

The bottom line and in conclusion of these pieces of auto insurance advice for the teen driver is that getting good grades, taking driver’s training and keeping a clean driving record will benefit them immensely in keeping the insurance rate to the minimum. You should involve them in finding the best insurance by comparing rates for coverage. When they are included in the decision they may be more likely to feel added pride in school work and in their driving skills. Instill these things early and even start before they get their license and your teen driver will be on their way to driving responsibly and paying a reasonable price for their auto insurance.

Conclusion: This article was publisher by Online Auto Insurance to view more information in references to Teen Auto Insurance visit our Auto Insurance for Teenagers page.