When a teenager in the family wants to begin driving, the parents typically plan on adding this person to their auto insurance coverage. That nearly always costs less than having the teen get a separate policy. Still, the premium will increase significantly because underwriters view teenagers as higher-risk drivers. Learning about discounts for teenagers offered by various insurers can save money.

A Safe Driving Contract

An insurance company may offer a discount if the youthful driver signs a contract agreeing to follow a list of safety rules. The rules include essential aspects for safe driving. Some guidelines include never texting behind the wheel and always obeying all stop signs and traffic lights. 

Some insurance carriers have their own version of this contract that can be printed from the website. Certain states have created these documents too. The Centers for Disease Control also offers an example. If the parents choose a policy that doesn't offer this discount, signing this kind of document is still a smart idea. It encourages the young person to definitively commit to driving safely.

Driver's Education

Several insurance companies reduce premiums if the teenager completes a training course that includes practice behind the wheel. Another possibility is an online training course. Keep in mind, the insurance company must approve these programs to qualify for discounts.

As with the safe driving contract, parents may want their teenager to complete driver's ed even if they select a policy without this discount. Research shows that teenagers who complete a formal course have significantly fewer traffic violations, violations involving alcohol, and accidents.

Monitoring Devices

Some insurers reduce premiums for automobiles that have monitoring devices with a global positioning system. This equipment identifies when drivers travel faster than the speed limit, roll through stop signs and engage in other hazardous behavior. These devices can indicate someone trying to beat a red light by suddenly speeding up while approaching an intersection. The equipment detects frequent hard braking, a sign that the driver is tailgating the car in front.

Phone Apps

Apps are available that stop texts and calls from reaching the cell phone when the vehicle is moving at a certain rate of speed. Parents may want everyone in the family to download an app even if there is no insurance discount for doing so as it could save their life.

When parents call auto insurance agents for quotes, they should ask about possible discounts for the teenager who will soon be driving. There's no reason to spend more on insurance than is necessary as long as the coverage is sufficient. Doing so may not only save you money but help your child be a safer driver as well.