Canadian Finance Blog

Posted: 26 May 2011 02:00 AM PDT

Now that your child has their driver's license it's only a matter of time before they'll be asking to borrow the car. The last thing you want to be concerned about is whether or not your car insurance policy will properly cover them, and at a reasonable rate. Getting the right coverage isn't difficult. It's just a matter of shopping around and asking the right questions. Here are a few tips on getting car insurance for teenage drivers.

Prepare Your Teenage Driver

The first thing you want to do is make sure your child will be a responsible driver. Simply taking a driver's training course isn't enough. You should begin teaching them the rules of the road and proper driving techniques as early as possible. Let them know the importance of having adequate insurance, and how the system works. Try and make them understand that by driving sensibly they will not only be allowed to drive more, but that it will help keep insurance premiums down. Encourage them to drive safely and avoid traffic stops, and the possibility of a ticket, because that will also help reduce rates.

Driver Safety

Since you'll be trusting your child's safety not only to their training, but to your automobile as well, you need to make sure it is properly tuned and in tip top running condition. Owning a vehicle that has a good safety record is important in keeping insurance rates down. Make sure your teenager wears a seat belt at all times. Let them know there is no such thing as an inexpensive accident, because of the deductibles, and that by obeying the rules of the road and doing the little things like checking their mirrors and making proper lane changes they'll be helping keep insurance costs at the lowest possible rates.

Getting the Best Rates

By teaching your child responsible driving techniques, and making sure the car is as safe as possible, you've done all you can to qualify for the lowest possible insurance rates. Now it's time to shop for the best rates. If you've been with the same company for a long period of time you should be eligible for a discount. By using the same insurer for multiple policies, such as life, home, health and auto you should also meet the requirements for lower rates through a combined insurance policy. Some companies also offer discounts for being a good student.

Comparison Shop

Just because you've used the same insurer for a number of years doesn't automatically mean they'll have the lowest rates. The insurance industry is a competitive business and companies are constantly tweaking their policies and rates to encourage new customers. By visiting a few insurance companies, you can get an idea of whether or not it would be beneficial to switch providers. Decide on the minimum coverage you'd be willing to get, and ask each company what their best rates would be for that type of policy. Many times the agent will come up with some sort of package deal that will suit your needs. After getting a few quotes from different companies, compare the rates and what is covered in each policy, and then decide which would best for you.

Return Trip

Before signing any papers with the lowest bidder, it might be a good idea to take that quote back to your present car insurance provider and see if they're prepared to meet the offer. If you've been with them for a number of years they'll probably be willing to make some concessions to accommodate you.

Guest post from Bailey Harris. Bailey writes about online car insurance quotes for www.insurancequotes.org.

Car Insurance Tips for Teenage Drivers originally appeared on Canadian Finance Blog on May 26, 2011.