Question: My daughter is about to turn 16 and we are looking at buying her a car. She found a 2004 Porsche Cayenne, and it is completely within our price range. The only problem is that since it is a Porsche and she is only 16, the insurance would be significantly more. Do you have any advice on what to do to get the price to go down?
Answer: You are correct the cost to insure a Porsche Cayenne will be significant. This is due to many reasons: it’s an expense car to replace, an expensive car to repair and has a lot of horsepower.
Then there is the added peril of the vehicle being in the hands of a newly licensed driver. Unfortunately, with whatever vehicle your daughter starts off with, her car insurance rates will be high due to her age and lack of driving experience. (See "A parent's guide to insuring a teen driver").
All that being said, there are ways to lower your teenager's car insurance rates.
First, comparison shop to make certain you get the best rates possible. It’s easy nowadays to get online car insurance quotes with many different companies by filling out only one quote form. Look for cheap rates, with a reputable company. Also, make sure you are offered all the available discounts you qualify for, such as the ones mentioned below.
A car insurance discount that is dependent upon your daughter (and a good way for her to show she should get a Porsche Cayenne as her starter vehicle) is the good student discount.
Eligibility requirements for a good student discount vary from one insurance company to another. In general, if a student ranks in the upper 20 percent of her class, has a B average or 3.0 average an insurance company will offer you the discount.
The good student discount is typically around 10 to 15 percent and usually applies to bodily injury liability and property damage liability, medical payments, and comprehensive and collision coverages.
You may look into a monitoring device for the Porsche, which will not only let you keep an eye on your 16-year-old daughter's driving behavior, but could get you a discount. The Teensurance program, offered by Safeco, gives a car insurance discount of up to 15 percent if the monitoring system shows your daughter to be a safe driver.
Other easy to obtain discounts to ask about include a multiple vehicle discount (if you add her vehicle a policy that also covers other household vehicles) and a multiple policy discount (if you also have your homeowner's policy with the same insurer).