Every individual has different criteria and different influencing factors when it comes to auto insurance premiums. Age of the driver is one important factor deciding the auto insurance rates. Just like senior citizens are charged a higher premium rate, teenage drivers are charged a higher premium rate too, since they are considered higher risk by the insurance companies. Below are some facts that insurance companies relate to teenage drivers and increase their premium rates:
- Teenage drivers usually drive fancy sports cars with greater pickups and high speeds. This is considered a big risk by insurance companies, and hence higher premium rates come with it.
- Teenage drivers lack the driving experience required to be safe in the roads. Fresh drivers who are buying their first cars, even if they are not teenagers are charged a higher premium rates. Lack of experience on roads is considered high risk by insurance companies.
- Teenage drivers tend to overlook certain rules of traffic because they are new behind wheels. This makes them risky drivers, and gives a reason for insurance companies to charge higher premium rates.
- Teenage drivers learn by trial and error. Minor accidents and traffic offenses are common. This can also be one of the reasons for increased premium rates.
- If the teenage driver comes from a city or is driving in a high density traffic route, then the insurance premium charged will be high.
Paying high premium for teenage drivers and students can be really heavy on pocket. Some measures can be taken to tackle the high insurance premium problem and get some discounts on the monthly premium that can be a respite in monthly budget.
- Enrolling as an add-on to parent’s insurance policy will save loads of money every month. Insurance companies consider this less risky because the teenage driver enrolled onto the parent’s policy will drive more responsibly.
- Students who get good grades in college are considered responsible drivers by insurance companies.
- Although there is a lack of driving experience, taking defensive driving courses can considerably lower the insurance rates.
- Another trick to lower the premium rates of auto insurance is to wait for at least a year after getting a driving license to buy a car. When the new car will be insured and the student will be ready to drive, the driving record will be a year older, and will be clean. Clean driving records earn good discounts when it comes to auto insurance premiums.
