How to Save on Car Insurance for Teenagers

It's no secret that car insurance for teenagers is pricey. Insurance companies know that young drivers are risky drivers, and they charge you those high rates to protect themselves. That's great to know, but it doesn't help you much when you get that first insurance bill after adding a teenage driver. And if you've got multiple kids driving and living at home at the same time, it gets even pricier.

So, how can you save money on car insurance for teenagers? Here are a few tips:

1. Is your teen going to be taking the car to school every day? If not, you might be able to save money by having him or her classified as an "occasional driver." Not all companies will allow you to do that, but it doesn't hurt to ask.

2. If your teenagers have good grades, they may qualify for a modest discount, so ask your insurance company. Usually the cutoff mark is around a 3.0 GPA. For a college student it may be required that they be on the dean's list or in the top 20% of their class.

3. Likewise, if they take a driver's education course, they may qualify for a discount (ask the insurance company though, as sometimes it has to be a certain type of course).

4. If you want to get the biggest savings on car insurance for your teenage driver, don't buy him or her a new car. You'll save the most by having your teenagers drive the oldest, cheapest car you've got in the garage (as long as it's a safe vehicle). Yeah, driving up to school in mom's old mini van isn't "cool" but it's better than no ride at all.

If you do cave to your teenager's demands for a new car (or he is able to buy one by himself), then get a car that is considered "lower risk." Also, a safer car (air bags, alarm system, antilock brakes, etc.) may qualify for additional insurance discounts. (That's true for drivers of any age.)

You might be wondering if it'd be cheaper to make your kids get their own car insurance policies, but as long as they're minors and living with you, it won't be. Families get savings by bundling policies that cover everyone, and it'll be much more expensive for Junior to get a policy independently from the rest of the family. It's more economical to increase the premiums on the family policy than take out two separate policies.

Hey, you can always make your teenagers get part time jobs in order to pay for their gas and their share of the car insurance.

These tips should help you save a bit on the car insurance for your teenagers. For the most part, though, you'll just have to accept the fact that having a teenage driver in the house will be a costly addition to your insurance premiums.