Car insurance for teens can be a bit of a challenge to say the least. Partly because they are considered high risk drivers and rates for high risk drivers are higher. Contrary to popular belief, they’re not necessarily more reckless drivers than adults, teens are simply labeled as inexperienced drivers. Insurance companies on the whole consider drivers under the age of 25 to be high risk.
Reducing monthly premiums
Rates for car insurance for teens can be reduced in many ways. The first and foremost is gaining experience taking driver’s education courses mandated by driver’s license departments in addition to courses offered by insurance companies. Parents can save on car insurance for teens if their grades are above average. Another method for reducing rates is having safety devices installed on a car. Check with insurance companies for specific devices but some common ones are anti-theft devices, traction control, anti-lock brakes, side-impact airbags, and automatic seat belts. It’s also vital to be specific on how the car is stored. An insurance company is more likely to offer a lower rate to anyone if the vehicle is stored in a garage.
If a teen is employed and pays their own insurance, keeping their grades up, and having safety devices installed, their rates can significantly drop. Also, having a teen added to a parent’s insurance can lower rates. Car insurance for teens can be further reduced if it’s proven that the teen is involved in the community in programs like the boy scouts or some other civic service program.
Since car insurance for teens is significantly higher than the rest of the population, it’s wise for parents and teens to do research and do side by side comparisons so they can determine what policy has everything they need for the best rate.
As mentioned before, there are some insurance companies that offer additional driver learning sessions and tests for free, one just has to search for them. The doesn’t mean a teen is exempt from a state required driver’s education course, but insurance companies that offer another way to further chip away at a monthly premium.
Some car dealers do temporary promotions for car insurance that include insurance with the cost of the car purchase. These are a bit harder to find in the states, but if you’re savvy in your searches, they can be found.
After doing side by side comparisons and finding the least expensive policy, be sure to look for hidden cash back clauses in the policy. It’s a great idea to go to sites such Consumer Reports to find comprehensive lists on car insurance for teens as opposed to getting quotes from individual insurance companies. It saves a lot of time with communicating with individual agents. Another source for saving a person time shopping is blogs concerning teen insurance rate lists.
Conclusion
Car insurance for teens may seem daunting, but if the parent and teen do their research together and take in some of these tips, it’s not going to break the bank.