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Reducing Teen Auto Insurance Rates


You know about teenagers- impulsive, reckless, and exploring, but inexperienced. This is one reason why teenage drivers are unlikely to get welcoming hugs from insurance providers when they come to their office and get a teen auto insurance policy. Insurers prefer car drivers who drive slowly and carefully. Not so slow, of course, because it inconveniences other drivers.

The fact is that insurance companies offer teen auto insurance at much higher rates than insurance for a different age group. Most have no choice. Incidence of accidents among teen drivers is quite high.  However, insurers are open to reducing rates on a case to case basis as long as some conditions are met.

Since most teen drivers have no driving experience, insurance companies will insist teenagers get some drivers training. Some companies will probably even refer them to a reliable driver’s training school. Most will also be prepared to give discounts should a teenager comply with this requirement.

One important thing to consider is the car. Teenagers love driving fast, or racing with fellow teenagers. Owning a fast, expensive car, and letting them drive wherever they want is not a very good idea. It is natural for insurers to charge an expensive car driven at high speeds with high rates. Giving a moderately priced, well-maintained car or limiting itineraries is a better idea. Another good idea is installing some quality safety systems. Insurers will be willing to give additional discounts for that as well.

One type of discount insurers’ grant to teenage drivers that has nothing to do with their driving skills or type of car they drive is their skill inside and outside classrooms. Insurance providers regard young people who excel in academics and who have social involvement, as responsible persons. Providers think that these people are not likely to drive their cars up an electric post.  This is possibly the easiest way you can reduce teen auto insurance policy for your kids and a good a way of motivating them to study harder. You can always threaten to take away their cars if they do not maintain a “B” general average required by most insurance companies.

A further option to consider is that you can reduce premiums your kid’s teen auto insurance by incorporating it into your own car policy. Insurance firms give substantial discounts for a policy that covers more than one car. The more cars it covers the better.

Teenagers will be teenagers, and will always be high risk drivers to insurers. However, there are things that you can do about it and the most effective is by teaching them to be responsible drivers.