The moment your child begins driving a car is a major milestone. Unfortunately, it can be a costly one. Adding an extra driver has some unavoidable costs, such as paying more for gas or potentially having to buy a new car. Adding a young and inexperienced driver is also going to raise your insurance rates. Auto insurance companies hate the risk these drivers create and they force you to pay for it. There are , however, ways to mitigate the cost of adding your child onto your insurance policy. The following three discounts can save parents hundreds of dollars every year on their premiums.
- The Good Student Discount. Not only are good grades pivotal for getting into a good school, they can also save you a lot of money on your auto insurance. Most of the major insurers carry a good student discount, which can save you as much as 25% on your auto policy. To qualify, your child needs to maintain a 3.0 or B average, and be enrolled full time in high school OR college. Some insurers also allow those who are homeschooled to get the discount. Placing in the top 20th percentile of a standardized test, such as the SAT, is another way to qualify. Generally, any student up to 25 years old can get it. GEICO is a major exception, limiting the discount to those 22 or younger.
Tough we say "as much as 25%", the actual discount will depend on where you live and your situation. For example, in Maryland we were able to find good student discounts of 11%. In North Carolina, however, one discount we found took off just 1% off the annual premium. As always, it's best to shop around to find the best deal you can.
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If you want to save money on the cost of driving school, check to see if your child's high school or college offers any discounted programs. Some schools also offer driver's ed as an extracurricular class. If that's not available, you can also turn to the insurance companies themselves. A few offer online courses that may be cheaper than traditional options.
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What happens when they come home for vacations and breaks? No worries there. Your child is allowed to drive the insured car when they come home for any reason.