It's the kind of sticker shock that makes any parent wince: car insurance for your teenage driver.For families with teens behind the wheel, you know what we're talking about: high-octane jumps in insurance premiums, especially if your 16-to-19-year-old is a boy.
"Teens are statistically the most dangerous drivers on the road compared to other age groups," said Tully Lehman, spokesman for the Insurance Information Network of California.
Unfortunately, that added risk - accidents, speeding tickets, crashes - revs insurance costs into overdrive.
"Adding a student to a parent's insurance policy roughly doubles the premium," Lehman said.
HOW TO SAVE: First, shop around. Not all insurers charge the same rates for teens, depending on the frequency and severity of loss claims in a given area or ZIP code.
That's why comparing premiums from four or five companies will yield a wide range of rates.
"That's the best way for anybody to save, especially for younger drivers. They'll see a big variation," said Brad Cooper, a senior vice president for insurance website InsWeb.com.
When contacting insurance companies for quotes, "Make sure to compare apples to apples, in terms of the coverage limits and the deductible amounts," said California Deputy Insurance Commissioner Joel Laucher.
KEEP GRADES UP: One of the biggest breaks for teen drivers is a "good student" discount. Typically, if your kid has a 3.0 ("B") or better grade-point average, you can shave off anywhere from 10 percent to 25 percent, depending on the insurer.
Kelly Piner, a Davis, Calif., mother of three sons, ages 16 to 24, said her oldest two waited until they turned 18 to get their driver's licenses, which helped reduce the family's premiums. By the time the oldest boys were added to the family's USAA auto policy, combined with a good-driver discount, "the rates were much more realistic."
For her youngest, who turned 16 recently, Piner said USAA quoted her an additional $900 a year for coverage. That annual premium drops to $720 if her son maintains "B" or better grades.
The Piner family also qualifies for a multicar discount for their four vehicles.
GO FOR BORING: It also matters what kind of car your kid drives. A boring Ford Contour will be far cheaper to insure than a fast, sporty Mustang. Frequently stolen vehicles, including Toyotas, are also more expensive to cover.
Consider the six-month insurance premium for a 16-year-old Sacramento, Calif., male. If he's driving a 2010 Honda Civic, it'll cost $2,062; if he's driving a 2010 Ford Fusion, he'll pay $1,887, according to InsWeb.com's "Quick Quote" tool.
In general, "pick a car with a good safety record, that's less expensive to repair and that's not on car thieves' most-wanted list," advises GEICO insurance company.
INCREASE DEDUCTIBLES? Raising the deductible is a very easy way to cut premium costs, said Bill Mellander, Sacramento-based spokesman for Allstate Insurance. But, he warns, the higher the deductible, the more you'll pay out of pocket if a crash occurs.
"As a family, you have to think about the long-term ramifications," said Mellander. "With a higher deductible, you may save a little on insurance, but how much will it cost for repair bills if you have to pay (them) yourself?"
ASK ABOUT DISCOUNTS: If you're buying auto, life and homeowners' coverage from the same company, for instance, you usually get cheaper combined rates. There's also a "persistency" discount for those staying with the same insurer for years.
Some insurers offer discounts for completing a safe-driver class or for low-mileage driving. Even if they don't apply to your teen, they might help lower your family's overall policy.
State Farm, for instance, has a "Drive Safe & Save" program in which a driver self-reports (or uses OnStar, if the car is so equipped) the vehicle's mileage every six months. The lower the annual mileage, the lower the premium, up to 45 percent in some instances.
Allstate and other insurers also offer discounts for parents and teens who sign up together for "teenSMART," an online safe-driving program. There's a one-time fee, but it can yield discounts up to 15 percent a year, says Mellander. It's at www.adeptdriver.com.
And when your teen heads off to college, some companies let you drop the premium but keep the student covered if they're at a campus more than 100 miles away and do not take a car. When they come home for holidays or summer, they're automatically reinstated.
"Adding a student to a parent's insurance policy roughly doubles the premium," Lehman said.
HOW TO SAVE: First, shop around. Not all insurers charge the same rates for teens, depending on the frequency and severity of loss claims in a given area or ZIP code.
That's why comparing premiums from four or five companies will yield a wide range of rates.
"That's the best way for anybody to save, especially for younger drivers. They'll see a big variation," said Brad Cooper, a senior vice president for insurance website InsWeb.com.
When contacting insurance companies for quotes, "Make sure to compare apples to apples, in terms of the coverage limits and the deductible amounts," said California Deputy Insurance Commissioner Joel Laucher.
KEEP GRADES UP: One of the biggest breaks for teen drivers is a "good student" discount. Typically, if your kid has a 3.0 ("B") or better grade-point average, you can shave off anywhere from 10 percent to 25 percent, depending on the insurer.
Kelly Piner, a Davis, Calif., mother of three sons, ages 16 to 24, said her oldest two waited until they turned 18 to get their driver's licenses, which helped reduce the family's premiums. By the time the oldest boys were added to the family's USAA auto policy, combined with a good-driver discount, "the rates were much more realistic."
For her youngest, who turned 16 recently, Piner said USAA quoted her an additional $900 a year for coverage. That annual premium drops to $720 if her son maintains "B" or better grades.
The Piner family also qualifies for a multicar discount for their four vehicles.
GO FOR BORING: It also matters what kind of car your kid drives. A boring Ford Contour will be far cheaper to insure than a fast, sporty Mustang. Frequently stolen vehicles, including Toyotas, are also more expensive to cover.
Consider the six-month insurance premium for a 16-year-old Sacramento, Calif., male. If he's driving a 2010 Honda Civic, it'll cost $2,062; if he's driving a 2010 Ford Fusion, he'll pay $1,887, according to InsWeb.com's "Quick Quote" tool.
In general, "pick a car with a good safety record, that's less expensive to repair and that's not on car thieves' most-wanted list," advises GEICO insurance company.
INCREASE DEDUCTIBLES? Raising the deductible is a very easy way to cut premium costs, said Bill Mellander, Sacramento-based spokesman for Allstate Insurance. But, he warns, the higher the deductible, the more you'll pay out of pocket if a crash occurs.
"As a family, you have to think about the long-term ramifications," said Mellander. "With a higher deductible, you may save a little on insurance, but how much will it cost for repair bills if you have to pay (them) yourself?"
ASK ABOUT DISCOUNTS: If you're buying auto, life and homeowners' coverage from the same company, for instance, you usually get cheaper combined rates. There's also a "persistency" discount for those staying with the same insurer for years.
Some insurers offer discounts for completing a safe-driver class or for low-mileage driving. Even if they don't apply to your teen, they might help lower your family's overall policy.
State Farm, for instance, has a "Drive Safe & Save" program in which a driver self-reports (or uses OnStar, if the car is so equipped) the vehicle's mileage every six months. The lower the annual mileage, the lower the premium, up to 45 percent in some instances.
Allstate and other insurers also offer discounts for parents and teens who sign up together for "teenSMART," an online safe-driving program. There's a one-time fee, but it can yield discounts up to 15 percent a year, says Mellander. It's at www.adeptdriver.com.
And when your teen heads off to college, some companies let you drop the premium but keep the student covered if they're at a campus more than 100 miles away and do not take a car. When they come home for holidays or summer, they're automatically reinstated.
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