Other Free Encyclopedias » Online Encyclopedia » Encyclopedia - Featured Articles » Featured Articles: 0 Car Finance - What Does 0% Car Finance Mean to Black Tv Stands

Auto Cost Insurance Low - The challenge of finding low cost auto insurance for teenagers

drivers driving lower premiums

If you are a parent looking to provide your teenager with auto insurance, you may be surprised to find that insurance companies consider teenagers and young adults between the approximate ages of 16 and 25 to be the highest risk drivers on the road, regardless of their gender or amount of driving experience. As a result, it can be challenging to find auto insurance for your teenagers that is not costly.

Teenagers are charged more for auto insurance premiums because accident statistics from police and insurance reports indicate teenagers are statistically more likely to receive tickets for driving infractions such as speeding tickets, running stop signs and lights, driving without insurance, and driving without registration. Teenagers are also statistically more likely to be involved in accidents, whether they are judged to be at fault or not, than are drivers from any other age range. Additionally, insurance providers charge higher premium rates for teenage drivers because teenage drivers, on average, will have spent less time behind the wheel and will have driven fewer miles than drivers from other age ranges. As a result, it is more of a challenge to find low cost auto insurance when teenagers are involved than with any other age group of licensed drivers.

However, you may wonder why your teenager has to face higher premium rates even though your teenager may have passed his or her driving instruction course with flying colors and has never been involved in an accident or received any kind of traffic citation. The reason is because of the statistical risk group teenagers fall into. While your teenager may be far more responsible and risk averse behind the wheel than the average teenager, insurance companies make decisions on a statistical basis, and statistically speaking, teenage drivers tend to be a greater risk on the road than other drivers, and due to this statistical information, providers can justify higher premiums. Unfortunately, whether your teenager is cautious and mature when driving a vehicle or reckless and a risk taker, you will still face higher rates to insure him or her due to his or her age.

However, all is not lost; there are numerous strategies that you can pursue as a parent and steps you can take with your teenager to lower his or her insurance premiums and find lower, fairer rates. Perhaps the most common strategy taken by parents is to insure the vehicle your teenager will be driving in your name, as well as in your teenager’s name. The combination of having an older, more experienced, and lower risk driver with a younger driver will result in premiums that are significantly lower than they otherwise would be if the only name on the insurance card was that of your teenager.

A second way to lower insurance premiums is to enroll your teenager in drivers’ education courses that are certified by the state in which you and your teenager live. Many states already make such educational courses part of the high school experience; however, some others may require you to sign your teenager up for these courses as extra curricular activities. As a result, the cost of such courses may range from being essentially free, where they are considered to be part of school fees and thereby paid by taxes, or they may be considered to be separate services and can cost hundreds of dollars. Regardless of where your teenager takes the course, however, once he or she completes it, his or her insurance premiums should decrease significantly, as the insurance company will view completion of a state certified course in drivers’ education as a sign of the teenager’s increased competence in driving safely.

A final element to consider when seeking ways to reduce the costs of your teenager’s auto insurance premiums is to consider the vehicle itself. As with fully fledged adults, the kind of car a teenager drives will significantly impact the costs necessary to insure the vehicle. Many teenagers are attracted to new and fast vehicles, but vehicles that are used and non sporty will be better choices for teenagers, not simply due to their producing lower rates, but also due to the lower costs of the vehicles themselves.


Auto Insurance Auctions - Benefits and Drawbacks of an Auto Insurance Auction [next] [back] Australian Business Register - How to Acquire, Access and Use of Your ABR Number

User Comments

Your email address will be altered so spam harvesting bots can't read it easily.
Hide my email completely instead?

Cancel or