For new drivers getting a driver’s license can be an exciting time. For parents, the moment might be met with some anxiety and trepidation. What they both might have in common is the sticker shock they’ll experience when they find out how much it costs to insure a new driver.
Getting a license, and potentially an additional vehicle, can be expensive enough. When you add the price of insuring a new driver, which can be significantly more expensive than insuring an experienced driver, it can put families in a real financial bind.
Thankfully, many insurance carriers offer a variety of discounts for students and new drivers. In fact, there are so many ways to potentially qualify for an insurance discount it can be hard to keep track. That’s why we’ve compiled this handy guide to everything you need to know about the types of insurance discount for new drivers.
Academic Achievers
Though discount programs will vary based on your carrier and specific plan, the primary source of savings for student drivers is based on academic performance. Drivers younger than 25 years of age, which means both high school and college students, are potentially eligible..
Generally, you’ll need to keep your GPA at a 3.0 or above, which means maintaining a “B” average. You’ll have to submit proof in the form of your report card or other document. You might also be able to take advantage of a discount if you are in the top 20% of your class, score above certain thresholds on college placement exams, or are make it your school’s dean’s list or honor roll.
Distant Students
This unique discount applies to parents and guardians that attend a school far away from them. This discount for parents applies if they have a distant child that does not drive their own vehicle.
The thinking is that parents should get a break on their student driver’s insurance rates if they are only driving the family vehicles while at home. Your insurance carrier may offer such a discount so if this describes your situation you should inquire about it.
Military Members
You may be eligible for an insurance discount if you are an active or former military member. Whether you’re seeking a discount for going back to school post deployment or are eligible for being stationed away from your vehicle, like a distant student discount, it’s worth checking with your provider to see if you can save on your rate.
Another option for members of the military is a reduced rate due to your vehicle being placed into long-term storage. No need to pay for collision coverage and the like if your vehicle is not being driven.
Enhanced Safety Systems
If your vehicle is new enough to enhanced vehicle protection and safety systems, you may be eligible for a rate decrease. Carriers want to incentivize things that prevent damage to you and your vehicle, thereby reducing their potential liability.
Therefore, safety systems such as backup cameras, lane keeping assist, or electronic stability control may reduce your payments. Similarly, anti-theft devices may also reduce your monthly payments, not to mention preventing you of dealing with the life disruption that a stolen vehicle represents.
Educated Drivers
Some insurance carriers will grant drivers aged 25 or younger a discount for completing driver education or driver improvement and defensive driving courses. Check to see which courses are offered in your state.
Additionally, you might be eligible for a program offered by your insurance company. Some insurance providers are also creating their own smart phone applications that will measure your driving performance and offer discounts and incentives for continued safe driving.
For families and student drivers the cost of car insurance can be a real deterrent, but if you know how to take advantage of built-in incentive programs and discount opportunities you can take some of the sting out of your hefty payments.