The first step to getting your teen insurance is to involve them in the procedure and teach them how to start from scratch. Let them understand that their insurance is expensive regardless of a new policy or you clubbing it onto your auto insurance policy; this will help them get a sense of responsibility and driver safer. Get your teen to help you to find a comparison site online and get multiple quotes.
Calculation of the premium:
Insurance companies use information you provide to them to analyze the risk involved in insuring the teen and calculate the premium based on that risk. You will need information like the teen’s name, age, gender, license details (learners or permanent), and the driving record. If your teen drives a minimum amount you can expect a reduction in your premium since the less time your teen spends on the road, the less the chances of an accident. If your teen has any negative remarks on their record prepare for a hefty increase in the premium amount.
Students qualify for various discounts like, good student discount where students with good grades receive a discount; a student living far off from home also receives a discount. A student who drives very little can apply for a low mileage discount.
Choosing an insurance company:
You can either club your teen’s insurance onto your own insurance and pay a higher premium or get the teen an individual insurance policy. Get quotes for both options and then decide which one you prefer; its general practice to buy a separate policy only if the teen has his or her own car; although it can be a smart option if you own a luxury or an expensive car.
Purchasing the policy:
You can choose to purchase the policy online as most people do, depending on where you live you can print out your policy immediately.
Before your teen starts driving:
Teens are considered high risk by all insurance companies and they couldn’t disagree more, however the sad truth for them to stomach is that the insurance company bases their assumption on statistics. Statistics show that teens and young adults in the age group of 16-25 are far more likely to be involved in an accident.
Here are a few tips to ensure your teen is on their best behavior:
Ensure your teen takes Driver’s Ed courses, the more the better; they are available online and the results are shipped to your doorstep absolutely free.
Explain to them the importance of always being attentive and driving defensively. Statistics show that most teen accidents happen because of distractions (mostly passengers) and aggressive driving.
A talk about drinking and driving and the effect a DUI can have on their permanent record is a good way to remind them to not drink and drive.
Tips to keep costs as low as possible:
- Do not give your teen a high powered car, a high risk automobile will attract a higher premium. A hatchback is best suited to a teen, while sports cars and trucks are definitely not recommended.
- Ensure they keep their driving record clean.
- Install safety features in the car to avail of discounts.
- Completed Driver’s Ed courses can get you discounts.
- Your teen should only drive when absolutely necessary; a low mileage discount is available at almost any insurance company.