Insuring a teenage driver is quite expensive, with their premium bills sometimes costing three times more than adult drivers. But car insurance companies say they can provide discounts to parents that would keep their teenage driver’s bill from hurting their pocket.
Teenagers are at their safest if they keep off the road, but that is impossible for students living in large metropolitan areas. They often have to drive on their way to school, sporting events, and part-time jobs. Once they start turning on the ignition, parents know that they need to get their teenager covered.
However, adding a teenager to a family auto insurance policy can easily trigger the costs to double and even triple in some cases.
Industry specialists say car insurance costs for teenagers are high since they are risky to insure. Just last month, safety experts reported that auto accidents remain the leading cause for teenage deaths in the United States, killing more than 5,000 young drivers each year. In 2007 alone, 3,000 out of the 7,000 total fatalities in car wrecks were teenagers. Experts add that the fatality for drivers age 16 to 19 is three times higher than those who are aged 25 to 69 years old.
But auto insurers reminded parents today that they can do a lot in keeping their teenage drivers safe and their premium rates low.
First of all, insurers tell parents that the kind of vehicle their teenager drives greatly affects costs. Expensive sports cars and SUVs are very costly to insure so they suggest choosing other car models. Parents are advised to choose vehicles that have been proven by statistics to be safe. Carriers say it would be best if teenagers drive older family cars since they have lower repair costs and consequently cheaper to insure.
Auto insurance providers also say that they offer several discounts to help families save on costs. Among them is the good student discount, which trims down the premium rates of young drivers who maintain a B or higher grade average. Teens who have not incurred traffic violations or at-fault accidents over the last three years can likewise expect lower premium rates. Many insurers say that they have developed their own safety training programs to help both young and older drivers avoid accidents. Motorists who complete those courses are entitled to discounts from carriers.
Providers stress the importance of communication between parents and children. Guardians are encouraged to help teens understand how important it is to drive safely and how small accidents could greatly affect insurance costs. Insurers also emphasize the importance of setting good examples to teens.