Teen Auto Insurance
Many parents will be in for a rude shock when they try to purchase auto insurance coverage for their teenager for the first time. That’s because most insurance companies consider this age group as very high risk. Statistics will back up this claim, as drivers under the age of 20 years have higher crash rates than any other age group.
Here are some things you can do to help lower their premiums. Try to encourage your child to do well in school with perhaps the incentive of getting them their own car. Most auto insurance companies will offer a good student discount that can be as high as 25%, if your child has a G.P.A. of 3.0 or higher. Choosing a high deductible can also significantly lower their premiums.
If you drive a very expensive car consider getting your teen a cheap used car as the value of the vehicle they drive is one of the determining factors in how high the premiums will be. Safer is always better and cheaper. Premiums for vehicles classed as sports cars will be much higher than those for safer models.
Most important is that parents instill their child with the responsibility of driving safely. Many states have started instituting a graduated driver’s license system that will place restrictions on young drivers usually until they turn at least 18 years of age.
As laws will vary from state to state it is very important that young drivers are aware of these restrictions and follow them to the letter as not only will they risk having their license revoked but their premiums could rise even higher. So as long as your teen is able to maintain a clean driving record you will find that the premiums will start to fall over time.
