Auto insurance companies view teenagers as higher-risk. This is a well-known fact. Their young age and inexperience with driving, combined with a lack of driving records, makes them more likely to be considered high-risk. These facts are often overlooked by parents and they wonder why their teenager’s insurance policy costs more than theirs.
There is still cheap teenager car insurance. You, as a parent or teenager, will likely feel that this is true. This is especially after you hear and read about the high prices of teenage car insurance. You must realize that there are many ways to lower your insurance premiums. This will allow you to find affordable car insurance for your teenager.
What can teenagers do to reduce their insurance premium?
There are many things teens can do to reduce their car insurance premium. Maintain a clean driving record. When you drive your first car, you have a clean slate. You should strive to keep it that way for as long time as you can. You should not do anything that could jeopardize your clean record. These actions can have a negative effect on your car insurance. You will find it hard to get discounts on your policy and also when you buy one. Insurance companies will penalize you for such incidents as they view them as negative points on your driving record. If you can keep your driving record clean, you will be rewarded with lower rates and discounts.
Maintaining a healthy credit score is the next thing you can do. Don’t spend more than your budget allows and pay all of your bills on time. Your credit history and credit rating play a major role in the price of your car insurance policy.
Teenagers can get insurance at a lower cost by maintaining and achieving good grades in school/college. Many insurance companies offer discounts to students who are good students. To qualify for these discounts, they may ask you to provide documentation. Insurance companies believe that students who are responsible and less at risk are better drivers. You will reap the rewards of hard work and academic excellence if you do your best.
You might consider taking a recognized course in defensive driving if you’re already doing well at school. This will help you to reduce your insurance premium even further.
What can parents do for teenagers to reduce the cost of their car insurance?
Teens’ primary source of financial support is their parents, who pay for most, if no less than all, of their expenses and purchases. Parents are the main source of funds for major purchases like purchasing a car. It is best to avoid buying them a flashy sports car. This is dangerous as it encourages them to drive at high speeds. It also attracts theft and will increase their insurance premium. An old family car is sufficient for a novice driver. It may not be what your teenager wants, but it will work for you as a parent.
Parents could consider including their teenager in their policy. Insurance companies often offer discounts for multiple vehicles/persons being covered under one policy. The downside is that any points accrued by the vehicles or persons covered under the policy will adversely affect the insurance premium, increasing the overall insurance cost.
It is a good idea to shop around before you decide to add your teenager to your insurance policy. Get at least three quotes from various insurance companies. Also, check with your existing insurance provider about parent-teenage coverage. Online quotes are also available. Don’t assume your current insurer will always offer you the best deal. Compare the quotes to find the one that offers the best value and service.
You can also increase your deductibles to reduce the cost of car insurance for your teenager. The deductibles you set will determine how much premium you pay. The insurance company will work with you to offer you additional discounts if you choose to pay upfront for the policy, rather than over a time period.
You could also make your teenager pay part of the premium. They will be safer drivers and more responsible in the long-term.
