Teens Save $48 a Month With Geico and Allstate
According to a recent report by Clearsurance.com, Geico and Allstate offer the best discounts for completing a driver’s education program.
Geico and Allstate offer a 15% discount for teen drivers who complete a driver education course. Teens paying the average starting rate for car insurance at $321 a month could save around $48 per month.
Qualifying for Driver’s Ed Discount
Teens who want to be eligible for a driver’s education discount should make sure they follow these steps:
- Choose the right course.
- Complete the course.
- Provide proof to the insurer.
It’s important to choose ther ight course because not every insurer will recognize every course. Before enrolling in a class, teens or their parents should contact their insurer to find out which classes qualify for a discount.
Enrolling in class is not enough to qualify for a discount. The teen needs to complete the course and pass. Upon completion, the teen should be given a certificate to turn in to their insurer to qualify for the discount.
Stand-Alone Policy Vs Teen on Parents’ Policy
Teens pay lower rates when added to their parents’ policy than if they buy a stand-alone policy. So, in most cases, it’s in the teen’s best interest to go on their parents’ policy.
Below is a comparison of teen insurance rates with a standalone policy versus on their parents’ policy:
- Allstate: $569 vs $336
- American Family: $303 vs $303
- Farmers Insurance: $806 vs $406
- Geico: $442 vs $212
- Liberty Mutual: $353 vs $353
- Nationwide: $471 vs $203
- Progressive: $594 vs $321
- State Farm: $430 vs $254
- Travelers: $379 vs $302
- USAA: $321 vs $202
Both American Family and Liberty Mutual charge the same rates whether a teen is on their own policy or when they’re on their parents’ policy.
Most insurers offer significant savings when teens are on their parents’ policy. Teen customers of Nationwide will pay over twice the price when on their own policy.
Additional Discounts for Teen Drivers
A driver’s education discount isn’t the only way teens can save on car insurance. Teens with a good GPA will usually qualify for an additional discount. Typically, insurers require a B-average or higher for this discount.
Another possible discount for teen drivers is an away-at-school discount. This applies to college students who do not bring their cars. Typically, the school must be at least 100 miles from the teen’s home.
Teen drivers and senior drivers are the two age groups with specific age-related discounts. Seniors can qualify for a defensive driving discount when they complete a course, similar to the discount for the driver’s ed course designed for teens
A usage-based discount isn’t exclusive to teen drivers, but it’s still an opportunity to save. If the teen practices good driving habits, they can qualify for significant savings.
Justification for High Teen Insurance Rates
According to Melanie Musson, a nationally recognized car insurance expert with Clearsurance.com, “Statistics demonstrate that teen drivers present a higher risk of filing a claim. Because of that risk, insurers charge higher premiums to protect against their risk of loss.”
Male teen drivers pose a higher risk than female teen drivers, so males tend to pay higher premiums.
Teens are more likely to demonstrate reckless driving behavior and distracted driving. They also lack experience for insurers to base rates on. So insurers depend on national averages rather than specific driving history information.
Comparing quotes is critically important to teen drivers because the premium difference between providers can vary by hundreds of dollars a month.
Read Clearsurance.com’s entire report here: Best Driver’s Ed Car Insurance Discounts (Save up to 15% With These Providers).