Saving on Insurance Costs
When you’re ready to hit the road, you’ll need insurance coverage. California requires all drivers, whether permitted or licensed, to have auto insurance coverage. This is usually afforded through the parent’s policy, but please consult with your insurance carrier as each insurance company handle teen resident drivers differently.
Saving Money on Car Insurance
Risk of a crash is significantly higher for teen drivers, particularly during the first year of driving. So, their car insurance rates usually cost more. Here are a few ways you can help your family save some money:
- Keep your grades up. Most insurers offer lower auto insurance rates for students with a “B” or higher grade average.
- Investigate discounts. Many insurers offer discounts for teen drivers who complete driver’s education or defensive driving courses.
- Drive carefully! Avoid crashes and tickets, which can cause a teen driver’s auto insurance rates to jump. Plus, it’s the safe thing to do.
- Don’t get your own car yet. If you won’t be the main driver for any of your family’s vehicles and can be classified as an occasional driver of one car, you could save your family hundreds of dollars.
- If you need a car, get a sensible one. Many experts agree that mid-sized sedans are the safest choice for teen drivers, and the cars often have the lowest auto insurance rates, too.
- Partner with your parents. Using a Parent-Teen Driving Agreement could help you avoid a crash or ticket that would increase your rates.
Insurance Requirements in Californiaa
Once you start driving without supervision, you are required to have auto insurance at the minimum level of $15,000 per person for bodily injury, $30,000 per accident for bodily injury and $5,000 for property damage (15/30/5). Insurance companies in California determine rates based on factors such as your driving record, how long you’ve been a licensed driver, how much you drive, where you live and what you drive.
Learn more about AAA Auto Insurance.