While teens eagerly look forward to getting their driver’s licenses, parents often approach it with apprehension, knowing it will automatically increase their insurance rates. In fact, according to the Insurance Information Institute, adding a teen girl to your policy could cause your rates to go up 50 percent or more, while adding a teen boy to the policy could increase the rates on the policy as much as 100 percent.
The good news is there are ways you can make insuring your first-time driver more affordable.
“The first thing to do is ask your insurance agent about what kind of discounts they offer,” advised Jeanne Salvatore, senior vice president and chief communications officer of the Insurance Information Institute. “Most companies give discounts for good grades and some also for taking driver’s education courses.”
Another way to save is with the use of telematics. For example, Nationwide’s SmartRide program uses a plug-in device to measure factors such as miles driven, hard braking, fast acceleration and nighttime driving. Then, based on what that device learns, the driver could earn discounts for safe driving practices. Check with your agent to see if the program is available and how it can benefit your rates—while also providing you with some insight and feedback on your teen’s driving.
In addition to asking about discounts and rate-reducing options, there are steps that parents can take that affect how much the policy will end up costing them:
- Buy used.Used cars often bring lower insurance rates because of lower repair costs.
- Think slow.A car with too much horsepower can entice risky driving behavior and ultimately lead to higher rates.
- Think simple.While many high-tech features are designed to create a safer driving experience, they’re also a dangerous distraction for inexperienced drivers.
Nationwide and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. We Stand For You is a service mark of Nationwide Agribusiness Insurance Company. © 2016 Nationwide.
Contributed by Nationwide Mutual Insurance Company, which is endorsed by Ohio Farm Bureau. Special savings on insurance coverage are available to Ohio Farm Bureau members from Nationwide. Contact your local Nationwide agent or call 1-877-OnYourSide.
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