Getting affordable teen auto insurance can be a bit difficult to a complete novice. Automobile insurance rates change differently depending on the insurance company, so read on to get to know more about getting car coverage that will not be too heavy on the finances for your teenage son or daughter’s new car.
Insurance companies assign much higher premiums to teenage drivers since they consider them high risk to insure. This is due to a lack of driving experience. Meaning, the possibility of traffic violations and road accidents is a lot higher. Higher premiums can be a bit harsh on budgets. However, you can do a few steps to help lower the rates for your teen driver’s auto insurance.
First, you need to tell them the importance of maintaining a clean driving record. That means to abide by traffic rules always. Avoid speeding, traffic violations, and road accidents. A clean record will lower premium rates after some time.
If you are thinking of buying your teen a new car, make sure the car has built-in safety features such as car alarm, anti-theft devices, and airbags. Do not choose luxury or sports cars, since these cars belong to the “high risk” class.
Costs of auto insurance can be reduced dramatically by buying a stand-alone policy from an agency that specializes in teen auto insurance. This means that your teen is not included on your insurance as an “additional driver,” but rather he or she has their own insurance. Insurance companies that specialize in teen auto insurance reduce risks for teens by placing necessary adjustments on their driving habits. Some requirements may include driving lessons, no driving after dark, or certain restrictions which lowers the rates for teenage drivers.
Teenage drivers’ statistics are far from good. A sixteen-year-old driver is ten times more at risk to get into a road accident than a thirty-year-old adult. That is why insurance companies hesitate to give teenagers lower rates.
Teaching the importance of trust, responsibility, and accountability is the best thing you can do to your teenager to lower his or her auto insurance rate. Make your teenager earn your trust regarding the use of a car. Tell them the significance of responsibility and accountability and let them pay at least a portion of their auto insurance premiums.
To your teenager, having a car means new found personal freedom and responsibility. Learning more about teen auto insurance and being responsible to do the steps above saves you and your teen the hassle and inconvenience of owning and maintaining a new car.