Tips on Buying the Right Auto Insurance for Your Teen Driver

Do you have a teenage driver in your home? Here are some tips on how to save on auto insurance coverage?

Getting a driver’s license may be exciting for your teenager, but it can be frightening for you, especially when you call your insurance company to add them to your policy. Your insurance rates will certainly go up but here are a few things you can do to help save costs:

1.    Encourage your child to get good grades. If a young driver maintains at least a B average in high school or college, they are eligible for a good student discount. If they are in college, they need to be a full time student to qualify.

2.    Choose safety over style when purchasing a vehicle for your young driver. This will not only give you peace of mind, but it can also help on your insurance rates. You can check safety ratings at the Insurance Institute for Highway Safety. If you are trying to decide between different cars, call our office and we are happy to give you an estimate.

3.    Raise your comprehensive and collision deductibles. It lowers your premium, and by paying these small losses out of pocket you may preserve your claim free discount.

4.    If you have an older car, consider dropping collision and perhaps even comprehensive coverage. Sometimes the car may be worth just a little more than your deductible. You may be paying more in premiums than you would receive in the event of a total loss. Check the Kelley Blue Book for the trade-in value.

5.    Allstate offers an additional discount if your child completes the TeenSmart program. It consists of parent-teen discussion, video review and in-car driving exercises. Call the office today if you would like more information.

6.    If your child goes away to college (more than 100 miles) and doesn’t take a car, you can get a break on your premium while still having coverage when they come home for holidays.

7.    Take advantage of multi-policy discounts. You get a discount on your auto insurance if you have your home insurance with Allstate as well. You get an additional discount if Allstate takes care of your life insurance needs.

The one thing that you don’t want to do is skimp on liability limits. Liability limits of at least $250,000 per person, $500,000 per accident and $100,000 for property damage is recommended.   

Additionally, consider a personal umbrella policy of $1 million above this limit. Young drivers are more likely to have accidents and lowering your liability limits could leave your hard earned assets exposed if your child hits another car or injures someone.

Information provided by Peachtree Corners Allstate Insurance agent Debbie Dykes.