I have talked to many families with a new driver, especially a teen driver, and they are shocked by the increase in their car insurance bill. Many of these families had two responsible drivers with a long history of avoiding accidents, thus enjoying good rates. However, when they called their old company to inquire about rates, many families discovered that their rates would double, or even triple, when they added their son or daughter to a policy.

Teenagers are one of the most expensive classes of drivers for insurance. This is because the youngster does not have his or her own good driving record, so insurance companies look at the record of the class of drivers as a whole. What they found is that teenagers, especially children, make more claims than other age classes of drivers. If the company takes the biggest risk of insuring these inexperienced and possibly reckless youngsters, they will certainly charge for that risk!

However, you can take some steps to minimize withers buildup. First of all, don’t assume that your old company will be the cheapest company. You should take the time to shop around. Another insurer may offer discounts for other things your family does to reduce claims, or they may be looking for businesses in your area so she can find some breaks. Some factors, like credit rating or the zip code you live in, may be cheaper with another company, and the fact that you’ve done business with an insurer for a long time usually won’t affect that at all.

However, one of the most common breaks is a multiple policy discount. If you move your entire family business, including home insurance, you’ll likely find substantial savings. I found a ten percent savings on my homeowners insurance by moving my home and auto policy to one place. It also got me into a better qualifying class, with the auto policy.

If your young driver is a student with good grades, be sure to mention it. B students, as a class, appear to make fewer claims than C students. Companies also offer discounts for drivers who take approved driver education or driver safety classes. This can discount another ten or twenty percent of the auto policy. And the same discounts that apply to all customers would also apply to a teenager. Safer cars, security features and anti-theft devices can make a substantial profit, and sometimes the investment in these features will pay for itself in no time at a cheaper premium. A simple alarm system, which only cost a couple of hundred dollars when I bought my last car, was worth another ten percent savings. Also, I am safe in the knowledge that my car, and perhaps myself, will be better protected.

A few minutes spent comparing auto insurance premiums and potential savings on other insurance can net you discounts of thirty to fifty percent. In my case, a small purchase saved me $50 a month or $600 a year. It was certainly worth taking a little time to investigate. If your family has more than one young driver, you could save a lot more!