A new report from Insurance.com states that the state of New Jersey is the second-most expensive state for teen car insurance. The Ratewatch report released earlier this month used date compiled from records submitted by various insurance companies.
Of the nation’s 50 states, Louisiana was found to be the most expensive state to insure teen drivers in. The average annual insurance for young drivers in the southern state is $7,900. This is way higher than the average cost in New Jersey, $6,200. Insurance.com also says that adding a teen driver to an existing policy can mean paying an average of $2,171 more.
To help save money on insurance, especially with the current economic situation, industry specialists have suggested that parents make use of discounts and other methods to lower insurance costs and accident risks at the same time.
Teen drivers can avail of special discounts offered by many auto insurance providers to students who do well in school. Called “good student” discounts, these markdowns are awarded to student drivers who perform well in school. Many insurance companies understand the need of parents to find affordable coverage for their teen drivers, hence the introduction of these promos. Some providers even offer as much as 15 percent discounts for qualified teens. Over time, this figure can mean large savings for the entire family.
Parents are also encouraged to help young drivers learn how to drive. Driving schools can offer great lessons in safety and traffic rules but parents need to be present when their teenagers are behind the wheel to supervise, monitor, and guide them. Because family members place their safety and lives in the hands of teen drivers, it is imperative that they learn to drive responsibly.
Curfews can also help prevent teen-related car accidents. Statistics show that most accidents involving fatalities occur between 9 p.m. and 6 a.m. By limiting the freedom of teenagers to drive during this period, they can avoid getting involved in costly and even deadly accidents. Staying up late can also result in teens driving under the influence, raising the possibility of an accident or an arrest.
Insurance companies also assess the quality and condition of a teen driver’s car to come up with a policy rate. Old compact cars can pose a greater danger than a newer and larger car. Insurance providers usually give lower premium rates to drivers with newer and relatively safer cars.