- Get on your parents' policy. It's usually
cheaper to add a teenager to their parents'
policy, rather than be insured separately. Most
companies won't charge an additional premium
until the teen is a licensed driver. Parents
need to inform their insurance agent or company
that their teenager is being added to the policy.
Deliberate concealment could impact coverage.
- Good grades pay off. Most insurers offer a
discount, some as high as 25%, for students
who maintain a B average.
- Driver experience. Graduated Driver Licensing
law requires teens to log 50 hours with an experienced
driver, but taking a formal drivers training
course will likely save on insurance. Many companies
offer up to a 10% discount.
- Penalties can land you back in the passenger
seat. Death and injury are the highest price
drivers can pay for drinking and driving, but
even if you manage to survive, a D.U.I. ticket
will cost teenagers big time. As a teen driver,
you'll likely be cancelled and if you can get
insurance, expect to pay a much higher rate
for the next 3-5 years. Traffic crashes and
citations will also impact your premium. Rack
up more than three and teens face cancellation
or non-renewal.
- Drive an "insurance friendly" vehicle.
Cars that are a favorite target for thieves
or are considered "high performance"
have much higher insurance costs. Ask for the
rating on any car or truck you want to purchase.
- Safety features and crash worthiness. Don't
assume an old clunker is your best insurance
bet. Newer makes and models are designed to
be safer and discounts may be available if you
have automatic seatbelts and/or airbags.
- Shop around. Even for teens, rates can vary
by hundreds of dollars. Also, if you can afford
it, ask for higher deductibles.
- Insure more than one vehicle with your insurance
company.
- Insure both your auto and home your insurance
company.
- You or another insured driver in your household
is a good student.
- Your car has a factory-installed air bag.
- You have been with the same insurance company
for at least three years and have had no at-fault
accidents in the last three years.
- You’ve taken a defensive driving course
(check your local and state reequirements.)
- You own a fleet of utility vehicles for farm
use, with a history of infrequent claims.
Raising Your Deductible
Did you choose a low deductible to avoid a large
expense if your car is stolen or damaged by fire,
vandalism or another incident covered by the Comprehensive
coverage in your policy? You may be paying more
for that security than it’s worth. Remember
that your premiums go down as your deductible
goes up.
Think Long Term
By raising your deductible, how much money could
you save over five years? How about ten years?
Are you likely to have so many claims that you’ll
pay more in out-of-pocket expenses than you will
save in premiums? If you stay relatively claim-free,
you can save a considerable amount of money.
Concerns about paying a higher deductibles
Ideally, you’d put away the money you save
by raising your deductible and lowering your premium,
so you’d have some savings if you needed
to pay a deductible.
Choosing a Safer Car
If you drive a small car or a high-performance
sports car, you’re more likely to be involved
in a serious crash, according to statistics compiled
by an insurance industry research group, the Highway
Loss Data Institute. Other cars are expensive
to repair because of their design and construction
materials.
Find out which cars cost insurance companies
more to insure, and therefore cost you more in
premiums. Your American Family agent has brochures
available with up-to-date information on the makes
and models with the best and worst safety records.
Safe Driving
Driving safely is the best thing you can do to
keep your auto insurance rates down.
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