Auto insurance companies know that teen drivers cause more accidents than any other age group, so adding a child to your policy will cause your rates to increase. Fortunately, there are ways to minimize the financial impact without sacrificing coverage. Here are a few money-saving tips for parents insuring their children for the first time.

How to Add a Teen Driver to Your Car Insurance Policy

1. Use Monitoring Programs

Many auto insurance companies offer apps or special devices that monitor your driving behavior in real-time. This data gives them a better idea of your risks of causing an accident, which impacts your rates. If they see that your teen driver obeys the speed limit and other traffic safety laws, they’ll likely offer a discounted rate for coverage.

2. Shop Around for Coverage

Every insurance company calculates risk differently, so rates can vary widely from one carrier to the next. If your policy is expiring, compare policies from several different auto insurance companies before deciding to renew.

When comparing policies, don’t just look at the price. Be sure each policy offers the same coverage, has similar deductibles, and comes from a company with a reputation for excellent customer service.

3. Consider Reducing Coverage

Buying more than the bare minimum liability coverage is always advisable, but some other policies may be unnecessary. For instance, if your child is driving an older vehicle that’s only worth a few thousand dollars, collision and comprehensive coverage may not be worthwhile. Dropping these protections can save hundreds of dollars per year without leaving you exposed to expensive liability claims.

Do you need to add a teen driver to your auto insurance? Since 1945, the agents at Reid Insurance Group have helped families throughout Southeastern New Mexico and West Texas protect themselves from risk with high-quality policies tailored to your needs. Their agents will compare options from several leading carriers and help you make the right choice. Visit their website for more on their wide range of services, or call (575) 396-3645 to request a quote.