As a parent, it must have kept you thinking why these guys are being hammered with the skyrocketing insurance rates. The reason – insurance is all about determining the potential risks. To get it done, insurers use several factors to come up with those rates. In the case of auto insurance, the driver himself is the key factor. Accidents parallel with insurance claims and insurers do not like them very much.
Following the said criteria, insurers have grouped drivers according to their age where the 16-year old drivers naturally fall as high-risk drivers. Obviously, the main reason is the lack of driving experience. Would you trust someone to drive you and he just got his license a month ago? I would assume no. Additionally, male teenage drivers have the highest recorded incidents of car accidents. This could be due to their nature of being easily distracted and their raging hormones that affect their driving behaviors. I remember the days when we were racing off a busy highway at 95 miles an hour. No doubt, that was pure adrenalin rush. But looking at it today, I realized how stupid I am and one wrong move could have incapacitated me or the other drivers – worst, killing myself. Being young is being careless, fear-free and invincible, which is I think terrible when taken up to the road.
For those who are looking to find low cost insurance premiums, here’s a good news for you. While it is difficult to change your status as a high-risk driver, there are few things that you can do to scratch off few hundred dollars off your bills.
The Type of Vehicle That You Drive
You cannot let your teenage son to drive a sports car, could you? It is likened to a blind man trying to land an airplane – obviously, waiting for a disaster to happen. Auto insurers know this, and if you insist, premiums could be double or tripled. Go for the family 4-door sedan car and save hundreds of dollars.
Do Some Shopping
Shopping is no longer limited to groceries; and if you want to save on insurance, you go shopping. You can simply do this by going to comparison websites and request for multiple insurance quotes from different insurers. Look for companies that are specializing on teen auto insurance. Sometimes, there is a need to switch to a new company. If you think it is worth it, then go for it.
Good Grades Can Lower Down the Premiums
Rewards are usually given to students with good grades. Students who are averaging of at least B or higher could qualify for this program. Insurers viewed them as responsible students and hence cautious on the road. This alone could reduce as much as 10% off the rate.
The Driver’s Education Program
There is no good substitute for attending a driving lesson. Insurers would gladly give discounts to those who have attended their lessons from those who have not. Keep in mind that insurance is all about risk and if you lower that risk, you lower down the rates too.
With our current insurance legislations, teenagers will always have to pay higher premiums. The only thing we can hope for is to find the lowest possible rate with the best coverage. Encourage your teenager to become a responsible driver.