Many parents feel scared when they allow their child to drive a car for their first time but parents also feel a sense of satisfaction when they know that their child is a good driver. Auto insurance companies charge a premium to protect your child’s car from damages and as compared to insurance for older people, teen insurance costs a little more. If you are wondering why does teen auto insurance cost more and what are the ways I can save money on this type of insurance then continue reading as all your questions will be answered here.
Understanding Why Teen Auto Insurance is Expensive
Auto insurance companies charge a higher premium for teen policies since teenagers tend to drive rashly. According to statistics drivers under the age of 25 years are more likely to get into a road accident and they are more likely to commit a road violation like speeding, driving after drinking or parking in no parking zones. Male teen drivers may also be charged more than female teen drivers since male teen drivers are more likely to commit these mistakes. While many people feel that teen auto insurance policies are hard on the pocket, there are a few ways you can get the auto insurance company to give you cheaper premiums.
Saving Money by Opting for Professional Driving Classes
Many auto insurance companies believe that teenagers that have learned driving formally will be better drivers. The best way to get a discount on teen policies is to convince your child to take driving classes before he applies for auto insurance. If your child wants to learn driving in his friend’s car or in your car then you can ask him to learn driving at the driving school and then practice by choosing his preferred method.
Saving Money by Encouraging Your Child to Learn
Majority of the auto insurance companies provide discounts to teenagers with good marks as a way to encourage them to learn. If your teenager is good at studies then you should search for a reputed insurer that provides discounts to student with good grades. If your teenager’s grades are not up to the mark then you should talk to your child and let him know about the benefits of getting good grades.
Saving Money by Joining the Right College Clubs
Certain sorority clubs and other clubs give auto discounts to students who join them. These clubs encourage new members to join them and as an incentive they provide discount coupons and other offers to interested people. If your teenager has found a safe club that he likes then you should let him join the club so that he can avail of auto insurance discounts.
Saving Money on Teen policies by Opting for Affordable Cars
The first car means a lot to any teen and most teens often ask their parents to buy them expensive luxury cars or trendy sports cars. If your teen has asked you to buy him a car that costs a high insurance premium then you should consider sharing this important fact with your child. It is important to explain to your child that the replacement parts for these luxury cars cost a lot and the insurance company will charge you a high premium due to this reason.