3 Ways To Choose The Right Car For Your Teen So You Can Save Money On Auto Insurance

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If you have a child that will be driving soon, one of your biggest concerns might be the money you will have to spend to insure the child's car. Teen auto insurance can be very expensive, primarily because teens are considered high-risk drivers, but there are a couple ways you could find cheap insurance simply by choosing the right type of vehicle for your child to drive. Here are a couple tips to help you with this.

Choose a car that is older or that contains safety equipment

There are a lot of factors that affect the cost of auto insurance, including the age and value of a car as well as the safety ratings and equipment a car has. If you consider these factors and the effects they can have on auto insurance rates, you might be able to save money on auto insurance for your teen just by choosing the right car.

For example, if you purchase the child a brand-new sport car, your premiums may be very high because the car is extremely valuable and may have poor safety ratings. On the other hand, if you find a cheaper car that is 10 years old, the value of the car is likely to be a lot lower. This will typically result in lower premiums for auto insurance, even when insuring a teenager.

Pay the car off

A second good step to take is to buy a car for cash. In other words, do not finance the car. If you have a loan on a car, you will be required to carry full-coverage insurance on that vehicle. If you own the car outright, you can get by with having liability coverage only, and liability coverage is a lot less expensive than full-coverage insurance.

Let your teen use the family car

Another option you have if you want to save money on this is to skip buying your teen a car and just let him or her use the family car. You will still have to add your teenager to your policy as a driver, but you will not have to pay separate auto insurance for the teen's car. This could help you save a lot of money in all.

There are a lot of other steps you can take if you want to save money on insuring your teen driver, and you can learn more about these steps by contacting a company, like Woodmansee Insurance Inc, that offers auto insurance.