Did you know that adding a teenage driver to your auto insurance policy for Arvada and Denver metro residents can cause your premiums to jump anywhere from 50 to 100 percent?

Teenage drivers have a disproportionately high amount of traffic accidents and tickets.  Auto accidents are the leading cause of death for Americans ages 15 to 19.

Thankfully, teenage driver discounts are available to help you save on your premiums. This post is dedicated to the top 5 premium discounts available to the parents of teenage drivers.

Discount #1: Good Student Discount
Most insurance companies will provide discounts for your student’s good grades.  The requirements vary, but if your child can achieve inclusion on the dean’s list or honor roll,l, you may qualify for premium discounts anywhere from 15 to 35 percent.

Discount #2: Defensive Driving Course
Knowing that teenage drivers are at a much higher risk of being involved in an accident, many insurance companies now offer defensive driving classes or coupons that give you admission into a local class.   These classes have proven to improve teens’ driving and will also qualify you for an additional 5 to 15 percent discount on your premiums.

Discount #3: Distant Student Discount
If you have a child who has moved away from home to attend school, you may be eligible for another premium discount.   Some insurance companies will decrease your auto insurance premiums if your child has moved a certain distance away from home (usually 100 miles) and is attending school without their vehicle.

While the discount is nice, we recommend working with your agent to review its details. Some insurance companies will remove and exclude your child from the policy, which can create a severe risk if they temporarily come home and use one of the vehicles in the house.

Discount #4: Driving an Older Vehicle
Buying your child a used vehicle will typically lower premiums than a new one.   In evaluating a car for your child, paying attention to the safety features provided by the car is also essential.   While the older vehicle costs less to insure, a slightly newer vehicle may come with safety features that will better protect your child in the event of an accident.

Discount #5: Take Advantage of Technology
One way that insurance companies are helping keep teen drivers safe is by providing electronic devices that monitor their driving habits. For some companies, the device is installed on the dashboard, while for others, it is simply installed into the vehicle’s power outlet.

The device then monitors the driver’s habits and creates a report that families can monitor. The report will typically show how many miles the car is driven, how fast it is driven, and how often the brakes are applied hard.

Drivers who drive safely with the monitoring device can qualify for a 30 percent premium discount.

If you would like to learn more about how these discounts can help save money on your teen drivers, please feel free to call our office.