Auto insurance experts say that because more teenagers are involved in accidents, car insurance companies slap higher premiums on them. Providers rely on several factors to come up with an insurance quote for young drivers. Statistics, studies, and driving records all come into play when insurers assess the risk teenaged drivers pose.
According to recent surveys, the average cost for insuring a teen driver in the U.S. is about $2,000 per year. States with higher incidents of car accidents involving teen drivers generally have higher insurance costs for young drivers.
Experts say, however, that some companies also generate insurance quotes based on several other factors. Analysts say that insuring teen drivers may not be as expensive by simply following several guidelines.
Many providers look into the driver’s records for any signs that the applicant is high-risk. A clean driving record will ensure lower premiums for young drivers. Experts say that parents should educate their teenage drivers about responsible driving. Providers favor drivers that are cautious and are not accident-prone. A spotty driving record can mean higher premiums for young drivers now and in the future.
Teens can also be included in an existing policy, specialists add. By declaring them as additional drivers, parents can save more money than purchasing new policies for teen drivers. Experts caution parents though, to make sure that the same benefits and discounts are extended to teens.
Parents can also enroll teen drivers in driving classes to help reduce the cost of insurance. Insurers give preference to teen drivers who have taken driving classes. They are considered safer drivers and are thus less of a risk to insure. Premiums are generally cheaper for teens if they go to credible driving schools. Car insurance companies can usually refer reputable driving schools for teenagers, experts say.
Analysts also warn parents against buying teenagers sports cars and other vehicles that can be considered as high-risk. High performance vehicles can often prove too tempting for young drivers, leading to potential accidents, spotty driving records, and ultimately, more expensive insurance.
Additional safety options that come with cars can also result in lower premiums. Even anti-theft devices can lead to more affordable insurance, experts add. They explain that most providers also take into consideration the measures car owners take to prevent unwanted incidents and factor these into insurance quotes.
Finally, teenagers can also ask for special discounts if they perform well in school. Some companies offer special rates for teen drivers who have good academic standings.
