With the school year in full blast, car insurance experts are calling on parents to look for ways to cut down insurance expenses, especially for their teen drivers. They point out that with the increasing cost of education coupled with the poor economy may result in higher premiums for younger drivers. Inexperienced young motorists may also find it harder to convince agents and insurance providers to give them better rates.
However, analysts say there are some things that parents can do to reduce the cost of auto insurance. At the top of the list is good parenting advice for first-time drivers. Statistics suggest that drivers between the age of 16 and 25 are some of the riskiest motorists to insure. Because they are more prone to get into accidents, providers often slap higher premiums on them. Next to senior drivers, teen motorists are some of the most dangerous drivers on the road. In fact, car crashes are the leading cause of deaths for Americans under the age of 25.
Having good parental advice and guidance can help younger motorists develop a sense of responsibility. Teens who learn how to driver under their parents’ guidance are more likely to adopt good driving behaviors that can result in more affordable premiums. For added measure, parents can also enroll their student drivers in special drivers’ education classes. These programs are usually accredited by insurance providers and give new motorists a head start when it comes to safe and cautious driving.
Parents can also cut back on insurance expenses by signing on their teen students as additional drivers to their auto insurance policies. By adding younger drivers to their existing policies, parents can save thousands because their college-bound children no longer have to purchase new coverage. However, experts say that the teen driver must reside in the same address to avail of the benefits.
Teens can also avoid using new cars because they are usually more expensive to insure. An inexperienced motorist can get involved in more accidents and newer vehicles can mean more repair costs. To help teens get a better understanding of how important car insurance is, parents can also discuss sharing payment for their policies. Finally, teens can get substantial savings by simply doing well in school. Most providers offer special discounts for students who perform well academically. Studies have proven that students doing well in school often act more responsibly behind the wheel, reducing the risks that insurers often watch out for.
