Teen Drivers can Get Lower Premiums, Experts Say


Having a teen driver in the family does not only increase stress levels, it can also put a hole in a parent’s wallet. Statistics show that drivers under the age of 21 are more likely to get in car accidents than adults. In fact, studies have shown that drivers aged 16 to 19 are four times more likely to be involved in car crashes. With that in mind, car insurance experts are recommending several steps for parents to cut down on insurance costs.

MOBURF-00016864-001Specialists say that a good foundation is always the key for lower premiums. Teaching a teenager to drive responsibly can go a long way in terms of life expectancy and insurance expenses. Parents can enroll their young drivers in defensive driving classes as soon as they get their learner’s permit to incorporate the values of responsible driving at an early age. They can then use this to get brownie points with most providers.

According to experts, teaching teen drivers to be safety-conscious and practice defensive driving can mean lower risk of accidents in the future. Fewer or no accidents mean a clean and more presentable driving record. This could be the difference between skyrocketing premiums and great discounts. Car insurance providers generally go through a motorist’s driving record for any sign of irresponsible driving. Successfully finishing a DMV-approved driving school can mean brownie points for teen drivers.

Some parents seriously consider raising deductibles to save money. While this can be useful for mature drivers who don’t get involved in accidents as much as teens do, higher deductibles may mean higher risks for young motorists. Because they are statistically proven to be more dangerous on the road than drivers from other age groups, increasing deductibles can mean out-of-pocket expenses in the event of an accident.

Parents can also add their teen drivers to an existing policy. Counting a young motorist as an extension in a policy will help lower premiums. This is actually better than taking out a separate coverage for a young driver. Policyholders can also purchase several insurance policies like homeowners, life, and health coverage from the same provider to cut on insurance expenses.

Experts also say that companies give out special discounts for students who do well in school. Teenagers who excel academically can get great discounts and rates. Called “good student” discounts, these special rates can shave off a substantial part of annual insurance costs. Most insurers consider consistent B-average students as eligible for these rates.