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One of the biggest appeals of turning 16 is finally driving a car. Perhaps you've even saved up for years to buy one of your own. Did you account for the insurance though? On average an 18-year-old driver will pay $5,411 for a standard auto insurance policy annually. Luckily, with some prior knowledge you can avoid having to spend all that money on insurance as a young driver.
Staying on Your Parents Policy
Staying on your parents plan is one way to save money. Taking out your own policy, especially as a 16-year old, will be very expensive by lieu of you being a new driver, thus risky driver. With your parents on your policy, it tells the insurance company someone is willing to vouch for your risk. Make sure you understand however the risk your parents take by putting you on their policy. Any violation or accident will cause their rates to skyrocket.
Discounts
Auto insurance companies offer a lot of discounts that can save you a lot on your policy. One offered by State Farm, GEICO and Allstate is a “Good student” discount. If you average a B or a 3.0 in school and are enrolled full time in high school or college, then you can qualify for an up to 25% discount. We even found certain drivers could even get up to a 27% discount in Boulder, Colorado with State Farm. Another discount can be earned by taking a defensive driving course. If you’re in high school there’s a good chance your own school or one nearby offers drivers education. Combining the two discounts can remove over a third of your monthly bill. Unfortunately, not every state offers every type of discount so you will need to inquire with your company. For example, in North Carolina, State Farm, GEICO and Allstate does not have a good student discount.
Read more: http://www.nasdaq.com/article/young-drivers-how-you-can-avoid-a-huge-car-insurance-bill-cm618187#ixzz48eE2cIaO
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