Auto Insurance Tips for Smart Parents

As a parent, you probably can't afford to lose large sums of money in the event of an auto accident. And of course, those parents with teenagers know that auto insurance is of utmost importance when their kids are on the road.

Here are some tips for smart parents who take their auto insurance seriously, and who want to find good coverage at an affordable price.

First, always encourage young drivers to take their driving record seriously.  Just as their (and your) credit history will determine whether or not they get a car loan, their driving record will always determine how much they pay for auto insurance.

For adults with a stable driving record it can sometimes make sense to hike your deductible on collision coverage and skimp on liability coverage, but for teenagers it's best to have as much auto insurance as you can afford, especially liability insurance.

Young drivers are far more likely to be involved in an auto accident than an adult. If possible, add your teen to your policy instead of buying separate coverage; this can help to keep premiums down.

Shop around aggressively for you auto insurance, and make sure you only go with a reputable agency that won't disappear once you're involved in a fender-bender.

Re-check the insurance rates for your teenager every 6 months to a year - auto insurance rates for teens drop regularly so long as there's no accident on their record.

Finally, it's a good idea to have your teen be responsible for paying an affordable portion of his or her insurance costs. Determine from your agent exactly what the increased amount would be if your teen gets a traffic violation, and let him or her know that they will be responsible for the entire amount of any such increase.