Teen Auto Insurance for Dummies


Your teenager feels a magical transformation into an adult when you hand him over your set of car keys. But as a parent you have also the responsibility of providing your teen with insurance.

Since teenagers do not have any driving experience, they fall into a ‘high risk’ category, which is why premiums assigned to them by insurers are much higher compared those rates of an adult’s insurance.

It is found out that the crash rate for teens is many times higher than a person in their mid 20s, and so it comes as no surprise that teen insurance is so much more expensive. A few tips can help you to cut costs when it comes to paying for your teen’s insurance.

The first step is to find an insurance agent who is specialized in teen driver insurance. It isn’t only important to get a good rate, it’s more important to get quality coverage, which will help you to avoid spending for damages if your teen gets into an accident.

Many parents do not know of discounts that they can avail of for their teens. If your car is installed with a GPS device, you will in all probability get a good discount. The biggest plus point of installing such a device, is that it will very likely prevent your teen from speeding. Each speeding ticket received by your teen can cause your insurance rates to skyrocket and your insurance coverage may be in jeopardy. It is imperative that if your teen gets a speeding ticket, the chance of him meeting with an accident sometime not far away in the future, increases greatly. Insurance companies know this, and in the worst case, your insurance may get cancelled, and finding another insurance company thereafter is extremely difficult.

Since teens with better grades at school are less likely to meet with or cause an accident, this too can reduce your rate. Be sure to buy a sturdy, inexpensive vehicle for your teen, replete with air-bags, an alarm system, day time lights, and anti-lock brakes, as they will inexpensive to insure too. If the driver has completed a course in defensive driving, this may also warrant a lower rate. Also, if you have been loyal to the same insurance company for many years, they may offer you a good discount on the insurance. In a few states, if you have a good credit rating, you are benefitted with a lower rate of insurance.

As mentioned before, the vehicle you buy for y our teen must be sturdy and inexpensive. Such vehicles are easier to drive and control, and are not prone to theft. The vehicle you purchase should preferably not be a flashy sports car, or an SUV, or an antique, as these will attract a higher rate of insurance.

By increasing your deductibles, you immediately increase the amount you save on your teen’s insurance quote. But beware, covering these expenses will be up to you, so make sure you will be able to handle it. But this also means that you will be able to save up to nearly half the amount of your insurance!

The most important part is making your teen a safe driver, and you can do this by teaching him responsibility, and also that they will be held accountable for their actions. Your trust will have to be earned by your teen, and they should be made accountable to pay some portion of their insurance premium.