Alyssa Lane
American Family Insurance offers a range of discounts for car insurance, including for families with teen drivers. The company provides resources for parents teaching their teens to drive, including tips on how to build their core skills and become more capable drivers. American Family Insurance also offers a Good Student discount for students with good grades, as well as a Good Driving discount for customers with a clear driving record and a Defensive Driver discount for those who have completed a defensive driving course. These discounts aim to reward safe and responsible driving behaviour, with the amount of savings varying by state and policy.
| Characteristics | Values |
|---|---|
| Good Student Discount | Available for students under 25 with good grades, a good GPA, or in the upper 20% of the class |
| Good Driving Discount | For customers with good driving behaviour over a period of five years |
| Defensive Driver Discount | For those who have completed a defensive driver course |
| Safe Driving Discount | For young drivers who go three or more years without an accident |
| Discounts for Families with Teen Drivers | Available for families with teen drivers or young adults purchasing insurance on their own |
What You'll Learn
Safe driving discounts
Good Student Discount
American Family Insurance offers a Good Student discount for students who can demonstrate academic achievement. This discount is available to students who maintain a B average (3.0 GPA) or rank in the upper 20% of their class. Homeschooled students can also qualify by scoring in the upper 20% in a nationally recognised academic achievement test, such as the SAT or ACT. The amount of money saved with this discount varies from state to state.
Good Driving Discount
The Good Driving discount is designed to reward customers with good driving behaviour over a period of five years. This discount is based on factors such as location and policy, and is available to both new and current policyholders with a clear driving record.
Defensive Driver Discount
The Defensive Driver discount is a state-mandated discount that is applied when a driver completes a defensive driving course. To qualify, drivers must provide a certificate from a state-approved defensive driving school and meet the eligibility requirements.
Other Safe Driving Discounts
In addition to the discounts offered by American Family Insurance, there are other ways for teen drivers to save on car insurance costs. Many insurance companies offer discounts for safe driving course completion and defensive driving school certificates. It's important to check with your insurance agent, as the availability of discounts can vary by state and region.
Additionally, teens can benefit from having a good understanding of safe driving habits and practices. American Family Insurance provides resources and tips for teaching your teen to drive, including practising in empty parking lots, reviewing basic skills, and familiarising themselves with the vehicle's functions.
By taking advantage of these safe driving discounts and resources, teen drivers can not only improve their driving skills but also save money on their car insurance.
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Student discounts for good grades
American Family Insurance offers a Good Student discount for car insurance to students who can demonstrate academic success. The discount is available to students between the ages of 16 and 25 who can maintain a B average (3.0 GPA) or rank among the upper 20% of their class. Students can verify their grades by providing a report card or transcript. Homeschooled students can also qualify for the discount if they have scored in the upper 20% in a nationally recognized academic achievement test, such as the SAT or ACT.
The Good Student discount is designed to reward responsible students who are assumed to be more likely to be responsible drivers. By offering this discount, American Family Insurance recognizes the hard work that goes into being a student and the support that families provide. The amount of savings varies from state to state, and interested individuals are encouraged to reach out to their insurance agent for more specific information.
In addition to the Good Student discount, American Family Insurance offers a range of other car insurance discounts for families with teen drivers. These include savings for students who are over 100 miles away at college without a car and those who complete 40 hours of volunteer work annually for a non-profit organization. Bundling multiple policies with American Family Insurance can also lead to additional savings.
According to a LendingTree study, good student discounts can lead to significant savings on car insurance premiums. For example, a 16-year-old driver on their parents' policy could save an average of 10.9%, or $546.07 annually. The specific savings vary by state, with Vermont offering the highest average discount of 18.5% and Hawaii offering no savings.
Overall, American Family Insurance's Good Student discount is a great way for students to be rewarded for their academic achievements and save on car insurance premiums. By recognizing academic success and assuming responsible driving habits, insurance companies can provide financial relief to students and their families.
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Defensive driving discounts
The Defensive Driver discount, on the other hand, is a state-mandated discount that is applied when the driver completes a defensive driving course and meets the eligibility requirements. To qualify for this discount, drivers must provide a certificate from a state-approved defensive driving school. The amount of the discount can vary depending on the state and the insurance company. For example, drivers in Washington are ineligible for the Defensive Driver insurance discount. Additionally, drivers over the age of 25 only need to complete 6 hours of classroom training to be eligible for the discount.
American Family Insurance also offers a variety of other discounts for families with teen drivers, such as the Good Student discount. This discount is available to students who maintain good grades, are on the "Dean's List" or "Honor Roll", or rank in the upper 20% of their class. The amount saved with this discount can vary from state to state.
In addition to these discounts, American Family Insurance provides resources and tips for teaching teen drivers, including starting their driver education in an empty parking lot and familiarizing them with the basic functions of a car. They also emphasize the importance of instilling confidence in teen drivers and reducing their anxiety while teaching them to be aware of the road.
To summarize, American Family Insurance offers defensive driving discounts as a way to reward safe driving habits and completion of defensive driving courses. They also provide a range of other discounts and resources to support families with teen drivers.
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Parent's policy vs. teen's own policy
Adding a teenager to an adult's car insurance policy will increase the premium. However, it is usually cheaper to add a teen to a parent's insurance policy than for them to have their own policy. Teens can save anywhere from $503 to $3,163, on average, by staying on a parent's policy. On average, teens pay $280 per month on a parent's car insurance policy.
There are several ways to reduce the cost of adding a teen to a parent's policy. Many insurers offer good student discounts for students with a B average or higher. Requirements vary, so check with your insurer, but this discount generally averages around 16%. If your teen attends school more than 100 miles from home, you may qualify for a student-away discount, which can save you an average of 18%.
If your teen is a strong student, American Family Insurance offers a Good Student discount. This discount is available to students who have earned good grades in school, demonstrating that they are responsible and may be responsible drivers. The amount you and your family can save with the Good Student discount varies from state to state.
In addition to good student discounts, there are other ways to save on car insurance for teens. Safety feature discounts are available for cars equipped with safety features like anti-theft devices, anti-lock brakes (ABS), adaptive cruise control, lane departure warnings, and collision preparation systems. While these discounts may vary, they typically offer about 4% off per qualifying feature.
Another way to save is through a telematics program. These monitoring devices note whether a teen driver stops suddenly, speeds, or practices other defensive driving strategies. When the device registers enough positive driving habits, your family may qualify for reduced-cost insurance.
Finally, if your teen is taking a driver's education class, this may help to reduce rates. American Family Insurance offers resources for teaching your teen to drive, including tips for parents and a checklist of basic skills to teach.
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Teaching teens to drive
Teaching a teenager to drive can be a stressful experience for both parties, but it is an important life skill that must be mastered. Here are some tips for teaching a teenager to drive, with a focus on safety and confidence-building.
Firstly, ensure your teen has a learner's permit and is familiar with the basic mechanics of the car. This includes demonstrating how to adjust the seat, side and rear-view mirrors, and the rules of the road, such as road signs and speed limits. It is also a good idea to get them comfortable with the position and function of each dashboard item, such as the glove box, sun visor, climate controls, and how to open the hood and gas cap.
When it comes to actually getting behind the wheel, it is best to start in an empty parking lot, where they can get a feel for the car and practice basic skills like accelerating, braking, and parking. It is important to give them time to get comfortable with the vehicle and its controls, and to be patient as they learn. This may take days or weeks, and it is important to maintain frequent practice to build on their skills.
Once they have mastered the basics, you can move on to more challenging environments and conditions. Start by sticking to roads with slower speed limits (under 35 mph) and quieter streets, where your teen can practice staying on one side of the road, pulling up to a stop sign, and anticipating cars exiting driveways. As they gain confidence, expose them to different times of day, levels of traffic, and weather conditions. Remind them to always maintain a \"safety space\" around the car, to give them room to react to any hazards.
Throughout the process, it is important to remain calm and constructive. If emotions run high, it is best to take a break or switch instructors. It is also crucial to talk about the risks of reckless or distracted driving and set family rules for using the car.
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Frequently asked questions
Yes, American Family Insurance offers a Good Student discount for students who have good grades in school. This discount rewards students who are responsible with their schoolwork and may also be responsible drivers.
To qualify for the Good Student discount, your student must be between the ages of 16 and 25 and maintain a B average (3.0 GPA) or rank in the upper 20% of the class.
The amount you save with the Good Student discount varies from state to state, so be sure to reach out to your agent for more information.
Yes, American Family Insurance offers a Good Driving discount for customers with good driving behaviour over a period of five years. They also offer a Defensive Driver discount for those who have completed a defensive driving course and meet the eligibility requirements.
Yes, American Family Insurance offers a wide variety of discounts for families with teen drivers. You can also save money by bundling multiple policies together.
