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By Transamerica / Sep 16, 2015

4 Ways for New Drivers to Save Money on Car Insurance

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Have a new driver in the family? With a fresh driver’s license in hand, your son or daughter will be eager to get a taste of independence on the road. But before you give them your car keys, looking into car insurance is a must. As teen drivers can double the insurance premiums for families, having a new driver in your pack can be pricey. Here are four ways you can save on auto insurance for new drivers:

1. Add to an existing auto insurance plan.
Adding a new driver to your current plan is one of the easiest ways to save money. Having a multi-car insurance policy may also qualify you for a discount. Check with your carrier and find out if they allow you to assign your teen to the vehicle that’s least costly to insure. Alternatively, you may be able to list your teen as an occasional driver on all of your vehicles. See which options meet your coverage needs and have the best rates. A few years later when your new driver is ready for college, they can usually stay on your current insurance plan.

2. Look for insurance before you buy a car.
If you are planning on purchasing a car for your new driver, shopping for insurance beforehand will help keep you from buying more than you can afford. The cost of car insurance is directly related to the age of the vehicle and its features such as price, maintenance costs, and risk of theft. You might want to consider buying a used car, as insuring an older car is normally less expensive.

3. Shop around for discounts.
Spend some time shopping around for the policy with the best value. Some insurance companies offer discounts to students with good grades or to recent grads. You may also receive a discount for setting up automated payments or if you pay for a year ahead of time. Those who serve in the military, such as being part of the ROTC, may also be eligible for a discount.

4. Get only what you need.
If you’re scratching your head thinking, “How do I know what kind of insurance I’ll need if it’s a for new driver?” you can start with getting a policy based on what you already know. For instance, with an older car you may only need basic liability coverage. But depending on where you live, it might be worthwhile to purchase comprehensive coverage, especially if you are in an area that is prone to a higher rate of accidents due to severe weather.

While having a new driver in the family can be exciting and a little daunting, with a bit of resourcefulness and research you can find a car insurance policy that best fits your needs and works for your budget.

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