It’s time for your teen to start driving. You may be excited and stressed at the same time. However, having a teen driver at home can also be helpful, saving you multiple trips to school and extracurricular activities for your child.

It is also of great benefit if a medical emergency arises or to run errands.

The downside is the price you will pay to insure your teen. However, the good news is that age 16 is actually the most expensive year, so you can expect the policy to steadily decrease each successive year.

We leave you some suggestions to save on your teenager’s car insurance.

• Group several insurance policies. Using the same Rebuilt insurance company for all your policies can really make a difference in savings. The average 16-year-old’s auto insurance policy costs $5,744. With those average savings, you could potentially lower your bill by $460 a year.
• Change your child’s coverage during college. It’s possible to reduce your car insurance coverage if your child goes to college out of town and doesn’t drive a car there. In this situation, you may be able to remove your child from the policy and then add them back as a temporary driver during the school holidays. Your insurance company may offer a “student away from home” discount. Requirements may vary depending on your insurance provider, but generally, you must attend a school that is at least 100 miles away.
• Increase your deductible. Opting forhigherdeductibleThe size of the savings varies by the insurance company and where you live. Applied to the rate of a 16-year-old driver, it is estimated that your savings could range from $517 to $919.
• Buy your teen a second-hand car. The type of car your teen drives is another factor that contributes to the cost of the annual premium. Older vehicles cost less to cover.
• Pay your annual premium in advance. If you pay your annual premium in advance you can save 4.9% compared to paying in installments throughout the year. Let’s say your teen is 18 years old and his annual premium is $4,271 on average. You could potentially save almost $210 per year by paying upfront.
• Check out student discounts. There are two common types of discounts your teen may qualify for on your insurance policy. The first is a nice student discount for maintaining a GPA of 3.0 or higher. You may be required to provide a transcript twice a year to continually qualify for the discount.
• It is worth mentioning that this type of discount and requirements may vary between each insurance company.
• Install a telematics device in your teen’s car. A telematics device in your teen’s vehicle to track her driving habits. By using one of these devices, customers experience an average savings of 3% across the country. That’s pretty hefty when you pay up to $5,000 or more in your teen’s premium each year.
• Invest in a safer car. A car with additional safety options and higher ratings can lower your premiums. Additional safety options, such as daytime running lights, blind spot detection systems, and electronic stability control, may offer additional discounts.

Once you’ve identified the safest vehicles and technology, confirm with your agent if and by how much these will reduce your insurance costs.

Now you know the different strategies there are to save money to reduce your family’s annual car insurance premium.