Teens and Car Insurance

Before you allow your teenagers to take a spin around the block in your new car, check with your insurance company. According to Consumer Reports, families in North Carolina saw an increase in premiums of 159 percent or $1,600 after adding a teen to their policy. This increase varies widely from state to state and by insurance companies. The same family living in Hawaii had a premium increase of only 16 percent or $312 per year.

What can you do to lower your premiums? Well consider asking your insurer for a good student discount. Insurance companies will favor students with good academic records because it shows maturity, responsibility and good judgment. This discount can save you $263 per year, according to Consumer Reports.

Also, remember to shop around. Not all insurers are equal. In California, rates varied from $905 to $3,400 for the same policy. So shop around and drive safely.

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