Top 2 Ways for Families with New Drivers to Save Money

money saving tips

A teenager in your household can cost you a lot of money. Here are Promax Insurance Agency’s top two money saving tips for parents of new drivers.

Money Saving Tip #1 – PLAN AHEAD.

Most insurance companies will offer a significant discount if your child has a 3.0 GPA or greater and maintains a full-time status of class load (12 units or more for college).

Talk to your teenager now about how their grades might impact the affordability of car insurance when they are ready to drive.

Money Saving Tip #2 – Purchase an older but reliable car with cash (no loan or financing)

Because of your minimal investment of your car, you will only need to purchase insurance that covers damage to the other cars you hit or other drivers. This will potentially cut your cost in half and can save you thousands of dollars over the first few years of driving.

A common misconception is that you will save money by adding your son/daughter as a “part time driver” on a parent’s vehicle. In reality, the rate is based on the newest driver, so the cost of the vehicle they are put on will increase significantly. Buying an old car will save you the most money, and depending on the insurance company, will allow your new driver to drive all policy vehicles.

It is possible to save money with new drivers and Promax Insurance Agency is available to help. Always remember, no cell phone use while driving. Be smart and be safe and save some money along the way!