Your teenager is probably delighted to have his or her shiny new driver’s license. And, if you have spent a ton of time chauffeuring your child to and from various activities over the years, you're also feeling delighted to be getting a break from this chore.
What you're not too thrilled with, however, is the estimate you received from your agent on how much it will cost to add your new teen driver to your insurance policy. Teenage drivers are notoriously expensive to insure, and while you want to give your son or daughter the opportunity to drive, making it as budget-friendly as possible is the name of the game.
Here’s some welcome news: Insuring your teen driver doesn't have to break the bank. By checking out the following tips, you should be able to make auto insurance much more affordable:
Get Multiple Quotes
You might naturally assume your insurance company is giving you the best possible quote to insure your new driver. However, this may not be the case. That's why it's worth the time to get multiple quotes from several Canadian car insurance companies to see which ones offer the best rates.
To help make this as easy as possible, check out a website like InsuranceHotline.com. All you need to do is enter in your postal code, and you'll be on your way to getting several quotes that may wind up saving you a significant amount of money.
Look into a Good Student Discount
Getting good grades can benefit your son or daughter beyond getting into college. In fact, your teenager’s report card can help you save money on his or her car insurance. Certain car insurance companies in Canada offer discounts to students who maintain good grades and can provide a transcript to prove it.
So, as you're shopping around to see which company offers the best rates, inquire if they offer this discount; if your teen is a solid student, it's a wise decision to go with a company that offers this perk.
Invest in an Anti-Theft Device
If you have some type of anti-theft device installed in the car that your teen will drive, it can help reduce the risk that the vehicle will be stolen, and your insurance company may lower your rates. Anti-theft devices include a car alarm, steering wheel locks and an engine immobilizer that will automatically prevent the engine from starting if the device detects that something other than your key is being used to start the car.
You will likely have to provide proof of purchase to your insurance agent, and some devices may result in a higher discount, so it’s worthwhile to check in with your insurance agent about your possible savings prior to shopping for an anti-theft device.
Opt for a Cheaper Ride
If sharing your family vehicle with your teen is not a viable option — and you want to purchase a car that your son or daughter can take to school and/or work — buying a pre-owned car can save you a significant amount on car insurance.
While your teen would be delighted with a gorgeous new convertible, car insurance tends to cost a lot more for late model vehicles. Instead, shop around for an older vehicle with some miles on it, that's in great shape and is reliable. You can even have it checked out by your mechanic prior to purchasing it to be sure it’s reliable for your teen. Insurance firm My Choice can suggest what cars are the cheapest to insure yet still reliable at the same time.
Enjoy Your Independence — Yours and Your Teen’s
You should be proud of your teen who passed his or her driver’s exam and is now a licensed driver. Both of you will enjoy the fact that you can now share in the driving responsibilities. By checking out these tips and doing your due diligence, you should be able to save some money on car insurance for your budding teenager.