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How to Save Money on Car Insurance

How to Save Money On Car Insurance

Are you a driver under age 25? Are you the parent of a new driver? Then buckle up, because you’re about to head uphill with your car insurance rates. While it’s true that auto insurance rates are higher with a young driver on the policy, there are a few secrets to keeping those rates as low as possible. Follow our survival guide to car insurance so that buying a policy for the first time or adding a teen to your existing policy won’t be so scary after all.

Understand That Your Rates Will Increase

Teens and young adults are considered to be “inexperienced drivers” by insurance agencies until they turn 25 years old. And because agencies are assuming more risk with an inexperienced driver, they charge more to have that driver on the policy.

car-insurance-rates

If you’re a parent, it’s hard to say just how much your insurance will increase with a teen driver because so much of it depends on individual circumstances. According to an AllState agent who spoke with Aceable, for some people, adding a teen to their insurance only increases it by a few hundred dollars, while for others, the cost of the policy can triple. Meanwhile, if you’re under age 25 and buying car insurance for yourself, the price is almost guaranteed to be higher than it would be for someone older. That’s why it’s crucial to compare policies and find out which agency will give you the best discount.

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Shop For Car Insurance

Are you spending too much on car insurance? Use an online search to shop and compare rates. See how much you can save!

Know When to Add Your Teen to Your Policy

It’s tricky to know when to add your teen to your insurance policy because it differs by state as well as agency. For the most part, however, you won’t need to list your teen as a driver on your policy until they get their license. It’s a good idea, though, to notify your insurance agency as soon as your teen gets a learner permit. This way, in the event of an accident, you’ll know if they’re covered by your policy.

Know when to add a teen driver to your insurance policy.

Consider Switching Insurance Agencies

Adding a new driver to the family brings about many exciting changes. (Less carpool duty for you, hopefully.) During this time of change, you might also consider changing insurance agencies to better suit your needs. Your current agency might not be the most affordable option, and in fact, it might actively be using pricing to get rid of you! Even if you’ve been with the same insurance company for years, now might be the perfect time to shop around.

Consider switching auto insurers to get the best deal.

Use an Aggregator to Shop and Compare Plans

An online aggregator for insurance companies is the fastest, easiest way to compare policies. There are several available to you, but we personally recommend AnswerFinancial, which last year helped the average customer save $451 per year.

Use an online search engine to compare insurance plans.

Look for Extra Discounts

With a young driver on an insurance policy, you’ll want to scrounge up any discounts that you can. Check with your insurance agent for discounts related to: taking a defensive driving course (with Aceable of course!), making good grades, driving a fuel-efficient car and more. Getting a quote from an agency like Answer Financial will also help you find discounts for which you qualify.

Search for any extra discounts on car insurance for which you may qualify.

Feeling a little more sure of yourself when it comes to car insurance? Good. Trust us: This process is way less scary than you think. And if you do need help, remember that Aceable is here for you every step of the way!

Compare Rates in Minutes

Shop For Car Insurance

Are you spending too much on car insurance? Use an online search to shop and compare rates. See how much you can save!