Auto insurance rates are affected by various factors. It is important to know what exactly can affect your rates before taking a decisive action to counter it.
The most important factor is obviously the type of auto insurance that you have chosen. First party insurance or fully comprehensive auto insurance is one of the most popular new car policies. It gives the policy holder the maximum amount of flexibility and at the same time it has to be noted that it is pretty expensive. In fact it is the most expensive type of conventional insurance you can get.
A non conventional insurance would be sports car, classic car or commercial auto insurance which is much more expensive. First party insurance gives you coverage for all accidents. Even if you were not at fault, you can claim for damages. And you can also claim reimbursement for situations where you have met with an accident with an inanimate object like a tree or pole.
Third party insurance is a lot cheaper. But the point is that it will cover you only for situations where you were the party at fault. You can meet with an accident and claim for damages only when you admit to being the cause and also show a proof of fault. You cannot claim reimbursement when you bang your car against inanimate objects, though you were at fault.
Secondly, auto insurance rates depend on the value of the vehicle. An expensive vehicle with more accessories will be a lot more expensive to insure and maintain. Sports cars also have higher insurance rates as they are put under the high risk category due to their large displacement engines. It is assumed that since the vehicle is known for its speed, the driver is going to take it to its highest degree of performance. But you can argue your case by saying that you are going to drive it only on weekends and not as a daily commuter. The lesser your car is on the road, the lesser the risk of having an accident.
You can also argue your case by saying that there are rules and regulations which prevent you from driving fast. And that you are obviously going to follow those rules as you already have a good driving record.
If you are going to pay the premium for your teenager, then it is better you add him or her to your policy. Since he or she is under your umbrella, the premium will be much lesser than what you might have to pay if you took a separate insurance policy in their names. A teenager is always considered a high risk individual. Try showing that he or she is responsible by displaying good grades or showing that he or she has enrolled for a defensive driving class. This will not only make them a better driver, it will help convince the insurance company that they are serious about responsible driving.
And lastly, choosing a low deductible is a sure fire way of increasing your auto insurance rates. The trick to keeping your premium low is to keep your deductibles as high as possible. But do be aware that a high deductible means that you must have that amount of money to pay in case of an accident.