Money-saving tips for younger drivers' auto insurance
Teens are not always expensive to insure.Conventional wisdom holds that teenage drivers are expensive additions to the family auto insurance policy, but that's not always the case, as a personal finance columnist writes in the Fort Worth Star-Telegram.
When columnist Teresa McUsic added her teenage son to the family's insurance policy, she actually saw a $200 decrease in the policy's cost.
The discount is due partly to graduated driver licensing GDL) - required in Texas and some other states - that keeps a teen on permit until a certain age. Not until McUsic's son was 17 did he become a licensed driver, and older teens have lower accident rates, lowering the cost of insurance.
McUsic found further savings when her son took driver's education classes. Because he had a GPA over 3.0, that provided a discount, too.
And the family's insurance agent listed the teen as a nonprimary driver on the oldest car they had. Having more drivers than cars on a policy can result in significant cost savings, said McUsic's agent.
Also, by dropping collision and comprehensive coverage on an older car - recommended when the annual premiums cost more than the car is worth - and raising the deductible, drivers can spend less on auto insurance.
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Posted: Octobor 27, 2009
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