Teenagers are considered high insurance risks, an observation that even a non-insurance person will agree to without much reservation. Lacking in driving experience plus the fact that they tend to be more nonchalant about speed and taking risky maneuvers, they get involved in accidents more often than mature drivers do. Studies on teen drivers reveal that they are 10 times more likely to get involved in accidents than adult drivers.
Parents naturally have to shell a bit more money to provide their teenage children the necessary teen auto insurance. However, there are some easy things parents can do to reduce insurance premiums of teenage drivers. First, it is imperative that they make their teenage son or daughter understand the importance of keeping an unblemished driving record – no traffic violations, speeding tickets, and accidents. In time, insurance companies will notice the clean record and the teen driver will be rewarded with discounts on the premiums. There are policies which carry higher deductibles, but with lower premiums. Purchasing one of these policies is also a good way of reducing premiums.
Parents are not expected to know all about teen auto insurance and the various schemes available to reduce premiums. It is advisable for them, though, to consult insurance companies who specialize in providing insurance coverage for teen drivers. These companies offer stand alone policies for teenage drivers. Stand alone policies are separate policies and these are not attached to the parents’ insurance policies.
Insurance companies focused on teen auto insurance reduce the cost of insurance premiums by imposing certain restrictions on teen drivers’ driving patterns to lessen the chances of accidents and other driving risks. Restrictions will vary from one insurance company to another depending on how they assess these things. They may require attendance in driving schools, no driving in the dark or zero alcohol when driving and other restrictions that may help reduce risks. This might be galling at first for teenage drivers, but this can prove to be the most effective method of lessening premiums. Moreover, these restrictions bring another benefit which may be incidental, but no less important, it promotes safety.
Reducing teen auto insurance is the job of both the parents and their teenage children. The parents have to instill in their children a sense of responsibility over the car they drive. Once this is instilled, it easier for teen age drivers to be more careful on the road. Eventually, with clean record insurance, rates get reduced.