A House full of driving teenagers means you probably have more than two cars that you have to insure. That can get pretty expensive, but you can reduce the costs with a few shortcuts. Here are some helpful tips on how to cut your automobile insurance expenses when you have to insure several cars and drivers all at once.
Put Your Teenagers on a Separate Policy
If they are driving their own vehicles, put the teens on a separate family policy. If they are expected to be responsible for their own insurance, this encourages them to split the costs fairly, work hard to cover the cost of their insurance, and learn some other valuable lessons about saving, spending and being an adult. It also decreases your monthly expenses on any of the vehicles that you and your spouse drive, which is very helpful if either of you happen to drive a luxury vehicle.
Put the Boys' Insurance on the Wife's Policy and the Girls' Insurance on the Husband's Policy
This may sound like a strange option, but by placing the girls' insurance on the husband's policy, the girls' typically low insurance rates combined with their dad's typically high rates balance out and almost equal Mom's low rates combined with the boys' high rates. The only thing that throws this option off-kilter is if there are several more teen boys than girls (or vice versa).
Find Insurance Companies That Reward Teens for Good Grades and Staying in School
Some auto insurance companies offer a reduction in monthly rates IF your teens stay in school and get good grades. If you already expect your teens to pay their own insurance, then this type of insurance plan positively reinforces both their efforts to graduate and their efforts to pay their own bills. Sometimes automobile insurance companies will include a discount on your rate as well if you are willing to sign up for a family policy that links all of your monthly premiums together.
Bundle ALL of Your Insurance Needs Together
This last option is only as good as the amount of caution with which your teens drive. If your teenagers all drive very carefully, and you know this to be true, then bundling is a great way to save money. It drops the rates on your house, all of your vehicles and drivers, all of your recreational vehicles, etc. The only caveat is that your risk assessment may put you in a higher bracket for all of your insurance if your teen gets into an accident.