• Blog
  • About
  • Contact
  • Disclosure

TeensGotCents

Why wait to live a centsible life?

  • Common Cents
  • Job Cents
  • Shopping Cents
  • College Cents
  • Mom Cents
  • Blog Cents

A Financial Abyss – Auto Insurance for Your Teen…

by Charlotte 1 Comment

Making sure you’re safe on the road in your first car starts with your teen auto insurance. While it can be pretty expensive to get your own policy, there are some awesome ways to save on auto insurance when you’re a teen. From being a good student to having multiple vehicles and drivers on your insurance, parents and teens can work together to ensure they get the best price on car insurance.

So.  I have been hiding for a while because I really didn’t want to even think about how much it is going to cost once Eva starts driving.  You know.  Because burying your head in the sand is always helpful…

Yes. I know. They don't really bury their heads in the sand, but that doesn't mean that I don't...

Yes. I know. They don’t really bury their heads in the sand, but that doesn’t mean I don’t…

Today I took the plunge and made a phone call to my insurance company to get the scoop on how to get the best rates for a teenage driver.  I found out that it is going to cost $169.34 EVERY MONTH for Eva to drive my car.  She is already an insured driver on my policy but only has her learner’s permit at this point.

Because I have been with Progressive for many years we qualify for several discounts.  Here are some discounts that you should look for from your company as well:

Good Student Discount

Eva qualifies for this because she has a very high GPA.  I’m not sure what the requirement it but you definitely want to check with your company to see if any of your drivers qualify for this discount.

Minor Child Discount

It’s self explanatory.  But seems like a strange discount to give.  Yes?  Because I have been with Progressive for more than one year they are discounting Eva’s rate as a minor driver.  Strange – but I will take it!

Driver’s Education Discount

Strangely enough Eva will not qualify for any discount through Progressive even if she does attend a Driver’s Ed class.  Another oddity with Progressive.  The rep told me that Progressive does not offer a discount for any type of driver’s education class except for those over 50.  That really surprised me as I thought that it was standard for companies to offer a discount to students who took Driver’s Ed.  Oh well.

Multi Car Discount

Most companies offer a discounted rate if you have more than one car insured with them.  Ask to make sure that you are getting this discount if you qualify.

snapshot-device

Progressive’s Snapshot Device

The ‘Black Box’ Discount

Not all companies offer this but it can mean significant savings so you should call them and ask.  Progressive’s program is called Snapshot.  They send you a small device that plugs into your car – mine plugs in underneath the steering wheel.  It keeps track of things like how often you slam on the brakes, how many miles you drive, etc.  Based on the information that it gathers Progressive determines the amount of discount that you are eligible for with them.  When we participated I qualified for a 20% discount!  You can get even larger discounts but apparently I use my brakes a little too ‘aggressively’.  I might try again for the 30% savings at some point.

A few other things to keep in mind:

*The longer you stay with a company the better your rates will be.  I called around to a few other places to see if they could beat Progressives rates.  No one was even close.  Probably because I have been with them for so long and have a decent record.

Making sure you’re safe on the road in your first car starts with your teen auto insurance. While it can be pretty expensive to get your own policy, there are some awesome ways to save on auto insurance when you’re a teen. From being a good student to having multiple vehicles and drivers on your insurance, parents and teens can work together to ensure they get the best price on car insurance.

*The insurance company is automatically going to put the youngest driver in the newest car.  Unfortunately (but in a great way) I have a newer car which means that the rate for Eva is higher.  If we had an old junky car for her to drive the insurance rate would go down significantly.  Be sure that your insurance company doesn’t assign your teen driver to your brand new Corvette if they only ever drive the ’87 Datsun…

*If you are unhappy with your company and you call around be sure to know exactly what your coverages and benefits are with the current company.  It doesn’t do you any good to call other places to get a quote if you are not comparing the exact same coverages.  It is worth taking an hour out of your afternoon to check and make sure that you are getting the best possible deal.

Can you help this girl? She despairs of ever getting her license...

Can you help this girl? She despairs of ever getting her license…

*Every six months I call, right before my policy is up for renewal.  One of their reps goes through my policy with a fine tooth comb to make sure that I am getting all of the discounts that we qualify for and generally helps me look for any way to save us money.  Almost every single time they find a way to reduce my rate.  This last time I called we saved about $20 a month.  That’s $240 a year that we can spend on other things!

Insurance for a vehicle can be very expensive, which is one of the main reasons we have delayed getting Eva’s driver’s license.  Do you know of other ways to get a better deal on insurance?  If so please let me know!

Share the Wealth!

You May Also Like These

All teens should start learning about credit cards early, and oftentimes, the best lessons are learned through experience. Managing a credit card should teach them financial responsibility before the stakes are greater out in the real world. With proper guidance, teens will quickly learn how easily a credit card can help or hinder their financial future.Why Teens Should Consider Getting a Credit Card EarlyTeaching your teen about money can be intimidating, especially if you don’t consider yourself to be financially smart yourself. I know that I feel this way all the time! That’s why I’ve made a list of where to start when passing down money lessons to your children. Whether it be deciding to give an allowance or discussing savings and budgeting, these are the money discussions you must have with your teenager today.Where to Start? Helping Ourselves and Our TeensWhen you’re busy raising a teen, it can be easy to let money lessons slide. But one valuable lesson you cannot forget is teaching your teen how to save money. It doesn’t have to be too detailed or complicated. In fact, you can just sit down and have your teen promise to save a percentage of their first paycheck or put aside a portion, or even all, of their allowance. I cover some of the easiest ways to teach a teen to become a money saver with these practical and easy tips to get the conversation started.Practical Tips – Teaching Your Teen To Save

Join thousands of other teens on the path to a secure financial future!

Get my eBook Seven Days to Centsible Savings when you sign up for my FREE email newsletter!

< Previous Post Starting Your Own Business – Trailing with Isaac
Next Post > The Best Buy with Mike – 5 Tips For Tech Shopping

Comments

  1. Khaleef Crumbley

    June 7, 2013 at 4:10 pm

    I didn’t know that companies offered a tracking device for additional savings!

    That was also a great tip about them matching the youngest driver to the newest car. I hate when they do things like that without even telling you. I also know that they will automatically assign every licensed driver with your address to your policy. They actually did this to my sister by adding her landlord to the policy (they didn’t use apartment numbers on their licenses)! It took her a while to fight that.

    1
    Reply to Khaleef Crumbley" aria-label=' Reply to Khaleef Crumbley'> Reply

Leave a Comment Cancel reply

Your email address will not be published - required fields are marked *

Hi guys, I’m Eva!

Welcome to TeensGotCents, my name is Eva Baker and I founded this site when I was sixteen. I'm a complete money nerd and I love helping teens learn how money works. Also, I watch too much Netflix. Although I still have a lot to learn about personal finance I hope you will use my successes and failures to help reach your own goals whether you want to go to college debt free, get a part time job, work on a fun DIY project that will save you money or just read about ways you can learn to manage your money well as a teen. So glad you're here! Read more about my story here.

Become a subscriber

Get my eBook Seven Days to Centsible Savings when you sign up for my FREE email newsletter!

Be sure to check out these popular posts

What is a gift closet and why should you have one? There are so many reasons to have one if you are a teen, especially if you like to get nice gifts for your friends but don't have a lot of money. Here are some gift closet ideas for you!

Gift Closet Ideas For Teens

Losing your wallet or (eek!) finding out that your purse was stolen can be terrifying and frustrating. If you find yourself without your cash, license, IDs, or credit cards, there’s a few steps you have to do right away. This article walks you through what you can do now to keep your money safe and possibly even get back what you lost or was stolen.

Lost Or Stolen Wallet? 7 Things To Do Now

When you’re busy raising a teen, it can be easy to let money lessons slide. But one valuable lesson you cannot forget is teaching your teen how to save money. It doesn’t have to be too detailed or complicated. In fact, you can just sit down and have your teen promise to save a percentage of their first paycheck or put aside a portion, or even all, of their allowance. I cover some of the easiest ways to teach a teen to become a money saver with these practical and easy tips to get the conversation started.

Practical Tips – Teaching Your Teen To Save

A College Story: The Coen Family

  • Facebook
  • Twitter
  • Google Plus
  • Pinterest
  • Instagram
  • Blog
  • About
  • Contact
  • Disclosure

Copyright © 2021 Teens Got Cents  |  All Rights Reserved  |  Site Design by Emily White Designs