Teenagers are naturally at a higher risk on the road compared to the more veteran drivers. They are basically inexperienced and fresh out of driving schools. There is still a lot for them to learn out there. Their teen auto insurance will merit a higher premium to cover for the big probability of getting into an accident.
However, before parents start to frown, they will be glad to know that there are ways to reduce the premium of their children’s auto insurance.
One way is to enroll their teens in a driving school that is affiliated with a car insurance company. Discounts are usually offered to students who graduated from an affiliated school. Moreover, a student is given bigger discounts (10% off or more) if he performed well in his theoretical and practical driving lessons. The qualifying point is normally a GPA of 3.0 and above, a good sign that the student will become a responsible driver.
Secondly, teen auto insurance premium can also be lowered if an older car model is used. At the same time, this is also the practical route to take while the teen driver is just starting out. Let them earn the merits of getting a brand new car by proving to their folks that they can be trusted behind the wheel. Meanwhile, it is advisable to install safety features like an airbag and security alarm on the used car.
Giving sports cars to teenagers is also discouraged because this immediately entails a higher premium. These are fast cars that can cause major collisions to a novice driver. The insurance companies think that the teens will not be able to handle such cars very well.
Teen auto insurance rates will lower over a period of time if a teen maintains a clean driving record. What parents can do is to teach their children well and lead by example. Drive safely and responsibly, and the children will follow. Be obedient to the traffic regulations and follow road signs. Remind teen drivers about the risks of taking a call or sending SMS messages on their mobile phones while driving.
Lastly, it is also helpful to gather several teen auto insurance quotes first so you could study which policy is best suited for your child. You can easily do this online. Many insurance companies give quotes for free. Choose only a policy that fits your budget while at the same time providing enough protection to your teen driver.
As a teenager turns 21, he will not be classified as high risk anymore and his insurance premium will be significantly reduced, provided he maintained a clean driving record.