How to Buy Cheap Car Insurance for Teen Drivers

Teen auto insurance rates are high. When it is time to get off a parent's policy, student auto insurance costs go up. Then again, if you know how to mitigate auto insurance high risk markers, you can save money. Would you know how to do it?

Stay in School: Save (up to) 25 Percent

It is not only cool, but excellent grades make student auto insurance cheaper. The Rocky Mountain Insurance Information Association (RMIIA) quotes discount savings "as high as 25 percent" for students with a "B" grade average.

Take a Driving Course: Save (up to) 10 Percent

Rates for auto insurance are a gamble on the likelihood that the motorist will get into an accident. For teens and college students just transitioning off a parent's policy, a formal driving course can shave money off the policy cost. One caveat: Ask your insurance agent about the type of formal driving education course the company recognizes. Some work only with local training providers or require specific courses to be taken.

Drive a 'Mom Car' and be a Do-Gooder: Save (up to) 50 Percent

You know these types of vehicles: They are safe, test well in the crash ratings, have side airbags, anti-lock brakes, factory-installed anti-theft technology and are generally not high on the list of must-haves for thieves. In one word, these vehicles are supremely un-cool. They are not fast, do not race, lack the booming stereo system you love and won't turn any heads in a club parking lot.

At the same time, they are a lot cheaper to insure; if BankRate's Insure Me is to be believed, the savings could add up to 50 percent. If the cost of car insurance has you worried, drive a "mom car" until you are out of the auto insurance high risk age bracket. By the way, if you join a recognized charity for volunteer efforts -- think Scouts -- you might qualify for additional savings.

Move up

Car insurance rates vary from ZIP code to ZIP code. If you are leaving home for college, educate yourself about the surrounding ZIP codes and their insurance rates. Move into a ZIP code with favorable ratings; mind you, this usually means moving into a more expensive area.

Talk to an Agent

Before transitioning off your parents' car insurance, talk to their insurance agent about a separate policy. Do you qualify for a small reduction simply because mom and dad have a long-term relationship with the agent or company? Should you wait until college starts to make the move or can you make the move during the summer break? When buying auto insurance, college-bound students might also want to inquire about savings for living at home versus moving to a dorm.

Sources

RMIIA: "Teens and Auto Insurance"

Insure Me: "Insuring Your Teen Driver"