Auto insurance companies are always taking into consideration how risky are their prospective policyholders. This is how they determine primarily what rate to give to a person. This makes premium rates different from place to place and from person to person.
Auto insurance coverage is a must in almost all states. So when your teen or college student started to drive on his/her own, getting auto insurance policy for him/her is something you have to accomplish. It is not new information that auto insurance policies for young drivers are highly expensive. It is a general fact that teens are categorized as risky by auto insurance companies thus giving them expensive rates.
Risky behaviors associated with teens are more than stereotypes. The association is actually proven by statistics and time. According to the Centers for Disease Control, incidents of car crashes accounts to 36 percent of teenage death.
Figures also showed that each year there are over 5,000 teenagers aged 16 to 20 who died in car related accidents and 400,000 of same age teenagers were seriously injured. Statistics also showed that more teenage drivers tend to be involved in distracted driving like using mobile phones while behind the wheels. Also they are considered to be the closest age-group to be involved in over speeding.
These and other statistical figures telling the same story about teen drivers are the reason why young drivers get the worst auto insurance rates. To be given a better auto insurance rate teens should reach the age of 25. When they turn 25 they can be freed from being associated to any of these risky behaviors.
However turning 25 is going to be a long run for most young drivers thus while letting the time pass by slowly helping their rate be reduced inch by inch can help a lot. There are many ways on how teens can get a more acceptable policy rates. One is by comparison shopping. Getting to know different companies and their policies is one way to land with the best-suiting one. There are also discounts offered for students and teens like good grades and no-claim discounts. Driving a less expensive car will also help teens to get a better rate for their policy. Also installing safety devices in the car they are insuring will help lessen the cost of their auto insurance. By doing so teens are lessening the risk for their cars to be damaged or stolen which is a very good thing for insurance providers.
