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Teens Tips on Lowering Auto Insurance

WASHINGTON, July 10 -- You have to keep your eye on the big things when a teenager starts to drive like making sure they drive safely. But parents and teens also have to watch the little things to save money on insurance premiums.

  GEICO has some recommendations that could help the family budget.

  *     Discounts for driver training programs
        A number of auto insurers provide discounts for students who
        complete driver's training.  Discounts vary, so comparison shop for
        the best rate.

  *     Good student discounts
        Good grades could add up to sizeable savings.  Students with a B
        average or academic honors may qualify for a 10-15 percent discount.
        Traffic offenses will nullify a good student discount, so drive
        safely.

        Teens should start slow
  *     New drivers need to approach driving gradually and deliberately.
        Limited use of the family vehicle is the best way to gain experience
        and maintain or control costs. New drivers should not have unlimited
        access to vehicles until they have become more experienced behind
        the wheel.

  *     Consider the type of car
        Young drivers are inexperienced and should never be allowed to drive
        high performance cars.  Keep in mind, too, that insurance costs are
        less on more conventional vehicles.

  *     Get a quote before you buy
        Insurance costs vary by age and type of vehicle.  It's always good
        advice to call for a quote or get one online at www.GEICO.com before
        you buy any vehicle.

  *     Review your deductible
        Increasing deductibles, which results in sharing a greater portion
        of any comprehensive or collision loss, can favorably reduce auto
        insurance premiums.  Check to find out exactly how much is saved by
        increasing the deductible from, say, $200 to $500 or even $1,000.

  *     Drop some coverage
        Consider dropping collision and comprehensive coverage for an older
        car.  Because collision and comprehensive covers only the car's
        replacement value, the older the car, the less valuable this
        coverage may become to you.

  *     Safety.  Safety.  Safety.
        The best way to cut teen auto insurance costs is to teach young
        drivers to drive safely and become experienced gradually.  Because
        young drivers are the least experienced, more fatal accidents occur
        in this driving group. Premiums reflect this overall driving
        behavior.

        GEICO offers these teen safe driving tips:

        *    Limit night driving. Many teen car crashes take place between
             9 p.m. and 12 midnight.  Beginning drivers should be restricted
             to driving during daylight hours initially.

        *    Restrict passengers.  Having more passengers in a car may
             increase the chance of greater risk-taking, because of greater
             peer pressure and because it leads to greater distractions.

        *    Keep it slow and safe for starters.  Remember that teens need
             to stay away from fast-moving, high volumes of traffic until
             they feel comfortable in such situations.

        *    Be firm about safety belt use.  Require that your teenagers
             wear safety belts at all times -- no exceptions.

        *    Discuss realistic consequences of drug and alcohol use.  Let
             them hear it from you that alcohol and drug use is totally
             unacceptable when driving.

GEICO offers a set of free teen safe driving materials under the name of "Can I Borrow the Car?" For more information, please go to the GEICO Web site: www.geico.com and open the link to the GEICO Information Center.