If you are the parent of a teenager, you likely are facing a number of additional costs to your budget now or in the near future. Parents of teenagers may be saving every free dollar than can to put their child through college soon. There are other costs to consider as well, such as buying a vehicle for your teen and the normal costs of raising a child such as clothing, school supplies, health costs, and more.
When your child begins driving, you will need to buy car insurance for your child as well. It makes sense that you would want to shop around and find the most affordable car insurance possible.
Consider Shopping for New Quotes
You may be perfectly happy with your current car insurance company and the rate you are paying. However, when you add a teen driver to your policy, you may find that your insurance costs increases significantly. Rates in general are often higher for young drivers, but some insurance companies may have more affordable rates for younger drivers than the insurance company you are currently with. You should first take time to talk to your current insurance company. You can get a rate quote and learn about possible discounts that you or your teen driver may qualify for. Then take a few minutes to shop around for additional quotes for comparison.
Increase Your Deductible
Your deductible is the amount of money you pay out-of-pocket when you get into a car accident or otherwise file a claim. After this amount is paid, your insurance policy will pay the rest of your expenses up to your insurance limits. Unless your limits are very low or your accident is very severe, insurance may pay for the entire cost of the accident except for the deductible. By increasing the amount of your deductible, you can lower your premium cost. You do want to ensure you have cash on hand to pay your deductible after an accident, so be sure to have this balance available in a savings account to use when needed.
Adjust Your Coverage
Your coverage limits can easily be adjusted with a quick call into your insurance company. By reducing yourage cover limits, you will pay a lower premium. However, you do want to consider this change carefully before following through with it. Keep in mind that if your coverage limits are too low, your insurance policy may not be sufficient to pay for the full amount of your claim after an accident. When this happens, you will need to pay for costs that your insurance policy does not cover. This may provide you with immediate savings on your premium, but it may cost you in the long run if you or your child are involved in a costly accident.
Parents today do want to find ways to cut back on expenses and save money. When teens start driving, costs can quickly mount. There are fuel costs, the cost of the car itself, and auto insurance to pay for. There are several different ways that frugal parents may be able to reduce the cost of car insurance. Some options like shopping for auto insurance rates and adjusting your deductible can be great solutions, but adjusting your cover limits may have a few downsides that you may have to contend with in the future.
You can keep these tips and strategies in mind as you shop for quotes and consider your options for lowering the cost of auto insurance today.