Monthly Archives: August 2017

Finding the cheapest auto insurance for teens

Becoming a young adult and striking out on your own brings with it many new responsibilities, including figuring out your own auto insurance policy. That usually means finding the cheapest auto insurance for teens.

If you’ve been on your parents’ policy and they haven’t filled you in, this will be when you find out just how pricey it is to get auto insurance for teens. It will be expensive, but there are steps you can take to minimize the financial pain. Here’s a rundown.


1. Cheapest auto insurance for teens? Shop around

It might seem quickest and easiest to go with the same insurance company your parents use. After all, it’s good enough for them. You might even be familiar with that company if you’ve been on your parents’ policy. But that could be a mistake.

Auto insurance prices can vary widely among companies.

Your parents may not have comparison shopped in a while, or ever, to ensure they’re getting the best deal. Furthermore, what’s be best for them might not be for you, because your task is finding the cheapest auto insurance for teens. Each auto insurance company has a different method for determining auto insurance rates, including your age, gender, driving record, occupation, credit history and marital status, where you live, whether you own a home, what kind of vehicle you drive, what you use your car for, how much you drive and how much coverage you want.

ALSO: 6 Tips for Keeping Your Teen Driver Safe

And don’t believe insurance commercials that promise to save you money. No one company is cheapest for all people in all places. That’s why finding the chepest auto insurance for teens will save you money. Of course, it’s easier than ever these days to get auto insurance quotesfrom many companies, so you can make an informed decision.


2. Get the right and cheapest auto coverage for teens

Just as you shouldn’t use your parents’ insurance company without comparison shopping, don’t just opt for their coverage levels. There’s no one right amount of coverage to suit every person’s needs.

People who have more money and assets that could be lost in a lawsuit after an accident, for instance, need higher liability coverage levels than people who are just starting their professional lives.

People who own pricier cars have a greater need for and potential benefit from comprehensive and collision coverage than those driving older, cheaper cars. That’s because comprehensive and collision, which protect against damage from accidents and other hazards, plus theft, will never pay out more than the current value of your car.


3. Raise your insurance deductibles

If you decide you want comprehensive and collision coverage, you could consider raising your deductibles for these coverages. This would leave you paying more after an accident, other damage or theft, but would save you money on your monthly insurance bill. Finding the cheapest auto insurance for teens means looking at the total potential costs, including deductibles.


4. Consider what auto coverage you don’t need

Some coverage extras might be useful, but can be jettisoned when you’re trying to save money on your auto insurance. For instance, you might be able to go without rental car reimbursement and roadside assistance.


5. Choose the right auto to insure

Several vehicle factors play into auto insurance rates, including a car’s record of accidents, injuries and thefts. So buying a car with a better safety rating and record can save you money, and could also save your life. Having a car that’s less likely to be stolen is a good thing as well.

Some insurers provide discounts for safety features and anti-theft devices, which is just one hint when finding the cheapeast auto insurance fo rteens. Allstate, for instance, provides a discount of up to 30 percent for passive restraints like airbags and motorized seatbelts, and 10 percent for antilock brakes.