There’s no getting around it, insurance rates for young drivers are painful. Pain. Ful. Here are five solid ways to get those rates down. There will still be pain, but the pill will be easier to swallow:
- Get decent grades. We’ve had some very smart clients make this a requirement for the privilege of driving. Maintain a B or 3.0 grade average and some companies will reward you with discounts up to 20%.
- Take a Defensive Driving Course. Some companies give significant discounts if you’ve completed certain hours with guided training. Not only will you enjoy the initial discount, you’ll be better equipped to avoid the “other guy” and less likely to run into things (which will result in more favorable premiums).
- Ask for Tenure Discounts. Some companies will offer discounts to tenured policyholders with favorable claims experience. For example, Safeco Insurance Company gives a discount for policyholders that have been with the company over one year who then add a new driver to the policy.
- Use Telematics Device Programs. Most auto insurance companies have discount programs that reward drivers for their responsible driving habits. Safeco’s Zubie and Progressive’s Snapshot track hard braking, rapid acceleration, excessive speed and late night driving. Monitoring the driving patterns of a newly licensed driver can help nip bad habits in the bud. They provide an opportunity for correction, but also a reward for a job well done.
5. Ask for a Distant Student Discount when that young diver heads off to college. If they’re living in a dorm or housing more than 100 miles away from your garaging address, they can often qualify.