Teen drivers are among the highest-risk drivers on the roads. They encounter more accidents than any other age group or demographic. As a result, teenage auto insurance is costly. As a parent, you'll need to purchase auto insurance for your teen when they begin driving. However, you might want to find the best rates. So how can you save money on insurance for your teen? Here is a guide to help you learn the best options for saving money on your teen's auto insurance plan.

Pick the car carefully

If your teen won't have a car, you might only need to add their name to your policy as a driver. While this will increase your auto insurance costs, it won't be as much as if you add another vehicle. So if you want your teen to have their own car, you must choose the vehicle carefully. The car you purchase plays a massive role in the rates you pay. But what kind of car should you buy? The best type is a used vehicle that isn't worth a lot of money. A car's value affects insurance costs. You pay more for cars that are worth more money than for less valuable cars. Therefore, you might want to pay cash for an older car that isn't worth a lot.

Add them to your plan

You can purchase a separate car insurance plan for your teenage driver, but you don't need to. In fact, adding them to your plan is a better option. After all, you probably have an established policy. If so, adding them will affect your rates but not as much. In fact, you might receive a discount, as insurance agents consider this "bundling." Bundling is insuring multiple vehicles or insurance types together with one agency.

Show your teen's grades

Insurance companies sometimes give discounts for good grades. Ask your agent if they offer a grade discount. If so, give the agent your teen's recent report card. If they have good grades, the insurance company might offer a lower rate for insuring the teen driver.

Contact your insurance agent

The best way to find out how much you'll pay for your teen's auto insurance is by calling your agent. You can ask questions about this and learn more about the rates and ways to cut the rates. 

For more information about auto insurance policies, contact an agent in your area. 

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