Between the cost of college and living expenses, teens face some high-ticket financial choices. Driving might be necessary, but are there cheap ways to get on the road? It doesn`t help financially that car insurers consider young drivers high-risk. Many parents procrastinate taking on the added cost of teen drivers on their car insurance policy. You might be a teen driver facing this dilemma. Should you get your own car insurance or stay on your parents?
Whichever insurance you end up with, here are several ways to make driving life more affordable. Here are 4 ways to save money and help convince your parents to get you driving.
Save on Your Vehicle
To drive somewhere, you obviously need a vehicle. Show responsibility and wisdom in your car choice. Instead of starting out in a hot new car, which costs more to insure, look for a reliable used car. Older cars can also be cheaper to register in your state.
Staying away from muscle cars can also save you on insurance costs. A vehicle that has a high-powered engine or is a coupe could be considered a sports car by your insurance company and rated a higher risk.
Buying a used vehicle means buying a car that has already lost its steepest depreciation value, which is good news for you. Often you can buy a used car and sell it a few years later for close to the same purchase price.
Save on Insurance
Staying on your parents` insurance might not ultimately be your decision to make, but you can show them how much cheaper it is to add a young driver to an existing policy compared to an independent policy.
Because young drivers have little to no proven driving record, insurers are hesitant to hand them their own policies at low rates. Teens are also statistically more likely to get into accidents.
A teen on their parents` policy at least has another member on the account to hopefully accept responsibility in the event of an accident. With some insurance companies, you can help your parents get a discount by getting good grades.
By doing your own insurance homework you show due diligence and you show you`re serious about getting on the road.
Save by Carpooling
Carpooling can save money. If your friends are getting their own licenses and cars, work out driving trades to help with gas.
Not only does sharing driving responsibility make sense with gas, but it also distributes wear and tear among the group. Car maintenance can be costly in the long run, especially if it`s driven constantly.
And while it might not seem like the coolest option, offer to carpool with your parents. By offering to give them a ride, they might be more motivated to get you driving.
Save by Taking Driver`s Ed
Taking a driver`s ed class does more than get you an insurance discount. The financial benefits of taking driver`s ed show up down the road. Driver`s ed reduces your chances of racking up extra expenses like speeding tickets and autobody repair.
Studies show that teens who complete a driver`s ed class lower their risk of getting a ticket. They are also less likely to be involved in a car accident.
Besides, driver`s ed teaches rules of the road and driving etiquette that can keep you from being the target of road rage. The driving hours alone are worth every minute because experience can be the best teacher.
While taking on the responsibility of driving can cost a lot, from buying a car to paying for insurance, there are ways to save. Talk through the process with a trusted adult. There are pros and cons to saving money, and cheaper is not always better when it comes to safety.
Being responsible, calculating costs, and proactively taking a driver`s ed class can impress your parents. Show them you`re ready for the responsibility of driving by doing your own research and presenting your options.