How To Save Money on Insurance with a Young Driver

Car insurance for your young drivers can be very expensive; there’s no doubt about it! But are there ways to get it cheaper?

There is a common myth that you can insure a car in grandma’s name, to make it cheaper for your young driver. Even though that may make the cost lower, that is not recommended. Statistics determine insurance prices. The chance of a young inexperienced driver causing an accident are higher. Insurance companies have to pay out millions of dollars for these claims. That is why, until your young driver has more experience, the price is going to be higher. If your young driver has an accident, the rate grandma pays for her own insurance will skyrocket! When the claim settles, your young driver and grandma may face charges of insurance fraud. The claim may also be denied!

Some ways to lower the cost for a young driver without causing trouble for grandma, are as follows:

Send the new driver to a certified drivers training school. This will often give your driver credit for 3 years of experience, which lowers the price. It also gives your child a chance to learn from a professional, and get lots of practice. The course can be expensive, but the long term savings can be huge!

Pick a cheaper car. It can be exciting to buy a shiny brand new car when you are 17, but collision insurance can make the price a lot higher. If you buy an older car and only insure it for liability, that will save a lot.

Find a company who uses telematics. We have a few companies who give a discount for having an app on your phone that tracks your driving habits. This can keep your young driver aware of how they are doing, and encourage them to do better to save more.
And of course, get a broker to shop around for you! Many of our companies have programs for new drivers with clear records. That’s what we are here for!

If you would like more information on driver’s training for your young driver, visit the Young Drivers website.