As a teenager one of the rights of passage includes getting a driver’s license. This can be a very exciting time for a teen but for the parents it can be a trying time. There are all the issues surrounding trying to teach the teen how to drive. That alone can be stressful. But when they finally do get their license and it is time to add them to your auto insurance, you may find the rates are incredibly expensive. The added expense can put a strain on the monthly budget and parents often try to find ways to mitigate the expense. When insuring a teenager there are some ways you can reduce costs.
Why is Insurance so Much Higher for Teens?
Although there are ways to reduce auto insurance expenses for teenagers the fact is that it will be more expensive regardless. There are several factors that contribute to this. First, statistics show that teenagers are more likely to get into auto accidents than older adults. For this reason alone premiums will be higher. A teenage driver has not been driving for very long so is inexperienced. This means they may not be able to react as quickly or know what to do in an emergency. In addition, teenagers have a tendency to be less responsible and more impulsive than adults. All of these factors contribute to the increase in auto insurance for teens.
How to Reduce Teenager Insurance Costs
There are, however, a few things you can do to help mitigate the expense of teenagers driving and adding them to your insurance. One of the most important parts is to ensure the vehicle they will drive is one that will allow for lower costs. If a teenager has a sports car the insurance will be even more expensive than normal. If the car is stolen it will be more expensive plus if the vehicle is faster it will increase the odds of getting into an accident. However, an older car will be easier to replace and if it is slow and clunky the teenager will not drive it as quickly. Even if the teen gets into an accident the damage will be less and the potential for injury will decrease.
A teenager who has a better driving record will have lower premiums. Make sure the teenager does not drive quickly and adheres to all traffic laws. Moving violations they are caught in and ticketed for will cause premiums to increase because it proves the teen is not responsible. However, if the teen has a positive driving record, the premiums can be less.
Most insurance companies provide discounts in premiums for teenagers who took a driving education course. This provides instruction on both laws as well as practical driving experience prior to the teen getting their license. This valuable experience can lower the premium costs because it is assumed the teen who completed such a course will be a better driver, less prone to accidents or tickets.
Some insurance companies will even give insurance discounts to teenagers who have a history of good grades. A teen who focuses on their education enough to have a good grade point average shows responsibility. The insurance company thinks this will translate to their driving habits as well. Academic excellence indicates a level of responsibility that shows the teen is a safe driver.
Teenagers’ insurance premiums are much more expensive than adults. This is because teens have more accidents and tickets. However, there are a few ways to mitigate the extreme expense of insuring a teenage driver. Make sure you follow all the recommended steps to save as much money as possible.
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