With the economy showing very little signs of recovery, many American parents with teen drivers are turning to just about anyone for insurance advice. Because young motorists are more costly to insure than regular adults, families often cut back on other basic needs and unnecessary expenses.
The economic slowdown, however, has inevitably changed how Americans prioritize their expenses. For once, a growing number of car owners are starting to increase deductibles, with some even dropping policies altogether.
Industry experts, on the other hand, strongly recommend finding other alternatives to getting rid of insurance. Driving without insurance is illegal in 48 states, with Wisconsin and New Hampshire expected to follow suit in the next year or so. Most states have stiff penalties for convicted drivers. Insurance specialists also add that uninsured drivers who get in an accident can end up paying thousands of dollars or worse, lose their personal assets.
However, there are some steps that families can take to slash premiums for their young motorists. Having a straight-A report card can qualify a teen driver for a “good student” discount from their insurance company. Providers often consider well performing students as more responsible drivers. Young drivers with 3.0 GPAs or higher can also apply for substantial discounts from their insurers.
Families can also save on auto insurance by purchasing multiple vehicle insurance. Instead of buying each car its own insurance coverage, car owners can buy insurance by the bulk for any number of vehicles, as long as they are from the same address. Some providers would even allow changes to policies if the policyholder’s cars are not of the same kind.
Teen drivers can also take defensive driving classes or re-education driving courses to get huge discounts. Provider often have accredited programs or schools that young motorists can enroll in. These courses serve as additional “insurance” for teens that have yet to gain sufficient driving experience. Experts contend that lack of experience often means higher premiums for teen motorists. The fact that most teen fatalities are the result of car crashes also cements the insurance industry’s justification for more expensive insurance.
The best thing that parents can do, according to specialists, is to teach their children how to drive responsibly and exercise caution at all times. Drivers who avoid getting in accidents for at least five years can get great car insurance deals. Aside from that, their driving records will also remain spotless, paving the way for better insurance premiums.