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Have a Teen Driver? Here’s How To Save on Insurance – GOBankingRates

aldomurillo / Getty Images <…….

aldomurillo / Getty Images

Back-to-school means lots of added costs for parents, from school supplies for K-12 children to books and tuition for incoming college freshmen.  But one thing parents may not consider is how expensive having a new driver or a teen driver can be.

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A recent survey showed us that insurance accounts for a substantial portion of household bills. “Shopping around for insurance — which you should do once a year and can mostly get done on a weekend afternoon — is an effective way to trim your household spending,” said CEO Andrew Schrage.

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Fortunately, there are ways parents can save on insurance even if they have a teen driver behind the wheel for the first time.

Impart Safe Driving Habits

Safe driving habits can have a huge impact on keeping insurance premiums low and even earning discounts. “Avoiding accidents and traffic citations can pay off with lower insurance premiums,” Michael Orefice, SVP of Operations at SmartFinancial, told in an exclusive interview.

Orefice also recommended restricting your young driver to allowing just one or two friends in the car until they gain driving experience. “Driving around with friends can be tempting after your child gets their driver’s license but a car packed with chatting and joking teenagers can be distracting,” he said.

Impart the Dangers of Distracted and Drunk Driving

When you’re a parent dealing with teen or young adult drivers, safe driving also means having some tough conversations with your teen about texting and driving, drinking and driving, or driving while high.

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“Teenage drivers may be more likely to engage in reckless driving behaviors, like texting and driving, and driving under the influence of alcohol or drugs. Research on texting and driving alone has shown that it can increase a teenager’s risk of crashing by 23 times,” Orefice said.

These behaviors can be especially costly for teens, as insurers may add surcharges as high as 45% for infractions like texting and driving, he told us.  

“Parents can encourage safer driving habits by stressing the costs of reckless driving. Beyond higher insurance rates, a suspended license and possible jail time, reckless driving puts their life and every life around them at risk,” Orefice said.



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