In business, the best way to get your product sold at the very least period of time is by targeting a certain group of people. Like how Blackberries are said to be the gadget of the pros. In auto insurance policies, teenagers are a seriously profitable area. A lot of teenagers are getting their own car and are already licensed drivers, which is why a lot of insurance companies offer special insurance rates to teenagers.
Insurance quotes for first time drivers are higher compared to regular drivers. This means that insurance policy rates for teenagers are more expensive than the insurance policy rates of their parents. Insurance companies do not have any information about these first time drivers and teenagers that is why their rates are higher. However, as time goes by, insurance rates for teenagers and first time drivers decreases or simply changes depending on how often they get speeding tickets or get involved in accidents. For teens, driving cleanly for at least 6 months would make their insurance rate decrease significantly.
There are also other things that teens and their parents could do to lower their insurance rate. One of the things that teens could do, besides driving safely and following all traffic laws for 6 months, is by driving lesser. This means that the teen could just drive from home to school every other day to gain a lower insurance policy rate. This is because when a teen drives less often there would also be a lesser chance that he could be involved in auto related accidents.
If the teen is a female, she would have a lesser insurance rate compared to males. Insurance companies believe that women drive less recklessly than males so they offer lower insurance rates to females.
Another one, before a teen decides to get licensed, the parents should educate their teen about the traffic laws and about the possibility of being in jail for 18 year-old teens and counseling for under 18 teens who violate just even one of these laws. This would reduce a chance that the teen would be involved in accidents.
The parent could also just add his child under his own insurance policy. In that way the parent would be paying only for his insurance policy every month and not another insurance policy.
Finally, the parent should set a good example to his child before the child even thinks of getting a license. The younger the parent starts to teach his child about traffic laws and how to be a responsible driver, the better. Besides it never is too young to start teaching a child about being a responsible and reliable driver and citizen.
Insurance policies are important even if you do not get involved in any accident. So, whether you are a licensed 56 or 16 year old driver you must have a car insurance policy to make sure that first, you abide in the law and second to make sure that you are financially safe from any car accident monetary stress.