It is a known fact that providers of teen auto insurance charge higher premiums than those offering ordinary insurance policies. Not only is this becoming a booming business due to the increasing number of teenagers getting their own cars, but also of the fact that teenagers are known to be more irresponsible drivers. Since it is also a fact that most teenagers get their gas, and insurance money, from their parents, they do not experience the difficulty of shelling out cash to pay for it. Who suffers the burden? Mom and Dad do.
Fortunately, teen auto insurance premium rates are not written in stone. There are ways to convince an insurance company to decrease their rates, or at least, give you a discount. Just remember to be tactful and street-smart. Learn to do your part in making sure that your kid is not a risky driver nor is he driving a ticking time bomb.
One thing you can do is to speak to the provider in person. Do not go through an agent. Remember, an agent can make outrageous promises, but the principal is still the one who will be giving it the go signal. Hence, instead of wasting time conversing with the representative, go directly to the source. Try to negotiate in your most convincing tone that your kid is not a risk factor and that he is a very responsible driver. When you do get that discount, get it in writing. This way, you have written proof of your agreement and that will help you in the future should problems arise.
You can also combine teen auto insurance with your own insurance policy with the same insurer. This brings the message that you trust them and that in return, they should trust you. Call it a two-for-one deal, if you please. Good business spells good profits. The provider will be more willing to grant you lower rates for a continued business relationship.
Pay your premiums on time. Sure, you did not get that discount. However, if you faithfully pay your dues, the company might just grant you an incentive. Insurance providers love clients who pay on time. That is a good reason to start with in asking for freebies.
Teen auto insurance is a tricky contract. You have a lot of agreements to comply with and a ton of warranties to look out for. It may be best to consult a lawyer on this one. If you can, look for a loophole. If the contract has a no-fault clause, then you are in good hands because it means that you will get paid no matter what, even if your kid is at fault.