My daughter just got her driving learner permit. She nagged, harassed, and begged me to take her to get it. She studied the book and even enrolled in the mandatory Georgia driver course online. So we went and she passed the test with flying colors. She can now learn to drive, but I’m still hesitant about teaching her.
The times are different now and it’s not like it was 20+ years ago when getting on the road as a teen wasn’t so expensive. Yep, I said expensive. I’ve been thinking about and researching how much it costs for teens to drive. The insurance alone is enough to make me want to stall until she is 18. Uggghhhh!!!
My friend Evan sent me some information about insurance rates for teen drivers and how to save. Here is what he says:
Saving Money When Insuring Teen Drivers
While most parents encourage their teens to learn to drive in order to ensure that they have the tools they need to function once they’re out in the world on their own, the truth is that parents face many drawbacks in the arena of teen driving. There are, of course, the myriad fears that accompany any new test of a child’s responsibility and judgment.
How Responsible is Your Teen?
Will your teens follow the rules of the road (and your restrictions) or give in to the peer pressure to perform by speeding and staying out past curfew? Or will friends in the car distract them to the point that they have an accident? Once your teens are behind the wheel and rolling out of the driveway, you simply have to trust that the lessons you instilled in them will be enough to keep them safe. But you also have to face the financial concerns that go along with this high-risk group, and the biggest expense could be insurance.
Ways to Cut Insurance Cost for Teen Drivers
Luckily, there are plenty of ways to cut your costs when it comes to insuring teen drivers. The easiest method of reducing your own out of pocket costs is to have your teens foot the bill for at least a portion of their driving experience, and this strategy benefits you in more than just the financial arena.
Give Teens Part of the Financial Responsibility for Driving
By making your teens fiscally responsible for some of the many costs that come with owning and operating a motor vehicle (aside from insurance there are loan payments, annual registration, maintenance, and gas, just to name a few), you are only enhancing the life lessons that come with driving a car. Sure, they get the freedom to go where they want when they want, but like everything in life, freedom isn’t free. Forcing them to take on some of the financial responsibilities of driving will make them aware of the associated costs so that they aren’t shocked when you eventually cut them off and force them to be adults. And the truth is, you’re actually doing them a favor; they’ll value the experience more if they have to earn it.
Negotiate with Your Insurance Provider to Keep Rates Lower
Of course, that doesn’t actually lower the cost of insurance outright. But there are plenty of options that will help you to do so. The first is to be a responsible consumer. Even if you’re keen to stay with your tried-and-true insurance provider, you should at least look into other companies and the policies they offer. At the very least it could give you some leverage to negotiate with your current carrier. And you should also find out about discounts that could potentially apply to you and your teen drivers, such as multi-car or multi-policy discounts.
Let Your Teen Drive Safer Vehicles
You can even save money by having your teens drive safer vehicles or adding safety features such as anti-theft devices (like LoJack) or even technology that forces your kids to drive safely (like Ford’s MyKey system that allows you to program specific keys so that the car can’t exceed a set speed limit). Your teens won’t be able to contribute much, but if they keep their grades up they can at least become eligible for the good student discount that many companies offer these days. It could make for a significant savings, so you should make it a condition of handing over the keys to the car.
Evan Fischer is a contributing writer for usedjaguarengines.com, where used Jaguar engines are shipped nationwide daily.
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
