Insurance on teen-aged drivers can be expensive. Since teenagers are relatively inexperienced as drivers, there is a higher risk of a teenager having an accident. The insurance rates on a teenager can be extremely high because of the likelihood of a teenager being in an accident. In many cases, adding a teenager to an insurance policy can raise the premiums by over 50 percent. In addition the cost of obtaining high limits and additional coverage such as umbrella coverage can also be prohibitively high.
Many insurance companies offer discounts on Teen Auto Insurance for things such as good grades or even taking a driver’s education course. Different companies offer different benefits for these types of discounts. For example, one company may offer a discount of only 5{27e8b423779a20fcbf3b0e5b78622daa9462ccff634cf59ab338bb6c41129d17} on the premium while the insurance company down the street may offer a 15{27e8b423779a20fcbf3b0e5b78622daa9462ccff634cf59ab338bb6c41129d17} discount. These discounts will not be of much benefit if the teenager has an accident or gets a ticket. Normally, when any driver gets a ticket or is in an accident their premiums will go up. Teen-aged drivers tend to be in the majority of people having accidents and getting tickets for violations such as speeding. Insurance rates for teenagers are based on these risks. The addition of mobile phones with texting capabilities has also raised the danger of accidents and injuries. Texting has become a very dangerous problem. That is why driving while texting bans have been passed into law in many places in the United States.
There are other ways to drive down the cost of teen car insurance. The type of car the teenager drives is a major factor in insurance premium costs. The cheaper and safer the car, the cheaper the insurance will most likely cost. There are also discounts available for certain safety features. Many companies give a discount if the vehicle has an alarm or if it has Lo jack installed. In many cases, raising the deductible to a considerably higher amount will lower the premiums to a manageable number. If the car is financed, the lender may require a certain deductible. The lender will usually require a smaller deductible.
The best way to save on Teen Auto Insurance is to get quotes from several different companies. Check to see what discounts are offered and compare. After deciding on a company, make sure to regularly check rates at other auto insurers and keep up to date on all discounts that are being offered. Be sure to take advantage of as many of the discounts as possible. If they require the teen to take a driver course, then get them signed up for that driver course. The insurance rates will not be sky high forever. As long as the teenager has no accidents or moving violations, the rates will go down after a certain period of time.
