When you add your teenage driver to your policy, it is inevitable that your rates will increase. Girls can increase the rates by as much as 50 percent, and boys can increase your rate as high as 100 percent. Don’t let those numbers alarm you because there are ways that the cost can be decreased. The first tip is good grades! Most car insurance providers have a good grade incentive program. The GPA requirement is usually a 3.0 or higher and can decrease the cost by as little as 10 percent up to 25 percent depending on your insurance provider. Studies have shown a correlation between good grades, and good driving, so encourage your students to keep up their grades.

Tip number 2: driver’s education classes do pay off. Not all states require new drivers to take drivers education, but encouraging your teen to do so can knock another 5 to 10 percent off your insurance costs. Some insurance companies offer “Safe Driver Programs,” that teens can participate in. Once they have completed these programs through the insurance company, the insurance company deducts another 5 percent from your payments.

The car your teenager drives has a huge impact on how much you will pay for insuring them.  A lot of parents feel safer knowing their teenage is driving a car that has all the latest safety features and technology, but the truth is, the newer the car, the higher the rates. That doesn’t  mean that you have to skimp out on safety features, just means you buy an older used car that is safe, thereby decreasing the cost to insure their car. Its important to look at whether or not the cost of a newer car will be more expensive than insurance discount for safety features. Safety features such as anti-lock brakes, traction control, automatic seat belts and side-impact air bags can reduce teen car insurance rates considerably. If you do choose to buy a new car, put the car in your name, and that should help decrease the premium.  But don’t just decrease premiums, make sure you use that money to invest in things like, my purchase structured settlement by finding structured settlement brokers.

The first tip to lower your car insurance is to raise your deductible amount. Whenever someone gets in an auto accident, they are required to pay a deductible before their insurance company will pay out a claim.  By raising a deductible from $250 to $500, you can slash your insurance payments by ten percent.  As a note of caution, if you choose to raise the deductible, you need to ensure that you have this money set aside somewhere safe.

The second thing that you can do to get lower car insurance is to see what security and safety features are built in to your vehicle.  If you do not have any of these features, you can add them.  There are literally hundreds and hundreds of items that will qualify for this discount.  Examples include LoJack tracking systems, VIN etching, anti lock brakes, and an active restraint system.

The third thing that you can do is move your auto policy over to the insurance provider that you use for homeowners or renter’s insurance.  When you have numerous policies with an insurance provider, they will often give you a discount.  This discount is called a multi rate or multi policy discount.

As we have demonstrated, if you use these three techniques, you can immediately lower your monthly car insurance premiums.  Keep in mind that these three methods only scratch the surface of available car insurance discounts.  To find out which auto insurance discounts may be available to you, you should visit the Cheap Car Insurance for Women Center or the Car Insurance for Young Driver Guide.