In the auto insurance industry, driving experience is always one of the foremost factors that affect insurance rates and premiums. For insurance providers to make profit, they have to minimize expenses and maximize income. Their income, naturally, comes from drivers who purchase coverage from them. Pay-outs and insurance claims are the providers’ main expenses.
Finding cheap car insurance is no easy feat for any driver. Motorists have to search through hundreds of companies offering a wide variety of products and services.
Statistically speaking, more mature and experienced drivers are less prone to get into accidents. Younger motorists, on the other hand, have to contend with higher premiums because they are more likely to be involved in a vehicular accident. Insurance companies charge teen drivers higher rates because they are simply more expensive to insure. In fact, the National Highway Traffic Safety Administration says that the leading cause of deaths among young Americans between the ages of 16 and 20 are car crashes.
Insurers always refer to statistics, studies, and researches to come up with appropriate pricing for different age groups and driver types. Many young drivers believe that because of their age and lack of experience, getting cheap car insurance is definitely out of the question. The truth is, teen motorists can find affordable coverage simply by making use of whatever advantages they have.
Most insurance companies take into consideration how safe a particular driver is. Basically, a more cautious and safety-oriented motorist will get into fewer accidents. Fewer accidents mean fewer insurance claims and bigger profits for insurers. The economics of the auto insurance industry dictates that a teen driver, no matter how young, can also be a safe driver and be less of a risk to insure. For this to happen, young motorists should take up drivers’ education and defensive driving classes 2 years before applying for coverage.
Cheap car insurance can also found by simply comparing the products and services that different companies offer. Nowadays, comparing insurance services has become easier with the advent of the internet. Websites that offer comparison services abound on the internet. Before deciding which provider offers the best coverage for their money, teen drivers should compare at least three insurers, including their present one.
Parents can also help their young motorists find cheap car insurance by giving them studier and safer cars. Insurance companies prefer that their policyholders make use of cars with safety features, especially if the vehicle will be driven by teen motorists.