If your teenager has recently earned a driving permit, it’s essential to understand the changes that might occur. Your car insurance rates will likely increase, and you may worry about your child's safety behind the wheel. However, with a bit of persistence, you can find an affordable policy. Here are some tips to help you reduce the cost of your auto insurance after adding a new driver to your policy.

3 Tips to Lower Car Insurance Rates With a Teen Driver

1. Add the Teen to Your Policy

By adding a new driver to your existing policy, you will normally pay less per month than if you bought a separate one for them. The advantage of a separate policy is that it insulates the child from the parents regarding liability, and any moving violations the teen incurs won't affect the parents' rates. However, that advantage can be costly, and it may not benefit you much if your teen is a careful driver.

2. Encourage Good Grades

Car insurance companies have evidently discovered a correlation between academic achievement and responsible driving habits. Many offer a "good student discount" to teens who earn a place on the honor roll or otherwise get high marks. Ask your insurance agent how your teen driver can qualify for such a discount. Depending on the carrier, it could save you 10% or more on premiums.

3. Buy Your Teen a Car

In some cases, it can be more cost-effective to purchase a car for your child to drive than to add them as a driver to your family vehicle. For instance, if your vehicle is extremely high-end or expensive to repair, you can often save money in the long run by purchasing a cheap, safe, older car that your teen will drive exclusively. The disadvantage of this is that you incur a higher up-front investment, but you also benefit from the convenience of your child not needing to borrow your car or ask you for a ride.

For affordable car insurance for your teen driver, contact the friendly insurance agents at Goggans Insurance in Scottsboro, AL. They have served individuals and businesses in and around Jackson County for over 30 years. They specialize in auto, home, farm, business, boat, RV, and motorcycle insurance. Visit their website to reach out to them online, or call (256) 574-3440 for a car insurance quote.