Car insurance companies determine insurance rates and premiums based on several factors. For adult motorists, the type of car they drive often plays a crucial role in assessing insurance rates. Driving records come second. Drivers belonging to other age groups, on the other hand, are assessed based on their driving experience and physical capabilities.
Young motorists are considered by providers are relatively inexperienced, hence the higher premiums. Companies also rely on different studies and surveys to come up with insurance premiums. Statistically speaking, drivers under the age of 25 are more likely to get involved in car accidents. In fact, car crashes account for more teenage deaths than anything else. Providers often make use of this fact to drive up insurance rates.
Industry experts also contend that young male drivers are also more expensive to insure. Most insurers consider male motorists as high-risk clients simply because of their carefree behavior and tendency to over speed.
According to specialists, parents can help keep insurance costs down by simply placing emphasis on responsible driving. Maintaining a clean driving record is essential for any car owner to enjoy lower rates and more affordable premiums. Teen motorists who manage to get traffic tickets or citations can expect their premiums to double or triple. Young drivers can participate in certified defensive driving courses to qualify for substantial discounts. Enrolling in safe driving classes can earn teen drivers brownie points with insurance providers. Most driving courses are valid for three years before policyholders have to retake them.
Teen motorists can also qualify for great discounts if they perform exceptionally in their studies. Insurance companies often give special “good student” discounts for deserving young drivers who manage to get a GPA of 3.0 or higher. Providers consider academic achievers as less likely to drive recklessly, making them less of a risk to insure.
Parents can also add their teen drivers to a family car insurance policy as an additional driver. This can help families save large amounts of money. Availing of multiple policies from a single provider can also earn policyholders discounts. By purchasing car, homeowners, life, and health insurance from the same insurer, motorists can slash premiums drastically.
The type of car young motorists drive will also play an essential role in determining premiums. Newer, more expensive cars tend to have higher premiums while older vehicles are much cheaper to insure. Policyholders can also drop collision and comprehensive coverage, especially if the car can be repaired with minimal expenses.