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Cheap Teen Auto Insurance

Parents facing the decision of purchasing auto insurance for their teenage driver often stumble upon roadblocks, as do individual teens trying to find cheap teen auto insurance to cover them. As teenagers count the day to their sweet 16, some parents face heftier bills and stressful times as auto insurance premiums can increase by 50 to 100 percent by having an inexperienced driver on the policy. With motor vehicle-related injuries being recognized as the biggest health threat to teenagers in the U.S., the majority of insurance companies see teens as high-risk drivers and that more often than not will result in a higher car insurance quote.

According to highway driving statistics, during 2005 more than 4,500 teens (ages 16 to 19) died because of injuries caused by automobile crashes. During that same period, studies found that another 400,000 teenagers suffered non-fatal injuries from car accidents. These numbers resulted in a cost of $26 billion to cover the costs of teenagers who suffered motor vehicle injuries. When insurance companies look at statistics like those, they are weary to offer low premium rates. However, there are ways for parents and young drivers to find cheap teen auto insurance.

The same research that found teens are responsible for billions in healthcare costs discovered that for each mile driven by a teen he or she is four times more likely to crash than drivers who are over the age of 20. Also, newly licensed teens have a particularly high crash risk during their first year of driving so purchasing an initial policy may be higher than after a couple of years on the road. Male teenage drivers unfortunately have a bigger stereotypical and statistical challenge to face than their female counterparts do. Out of the $26 billion spent, males accounted for a total of $19 billion. Insurance companies generate a car insurance quote for drivers using these types of statistics.

Auto insurance for teenage and young drivers can reach as much as $2,000 each year, but driving without insurance is even costlier. Fines, penalties and paying for accidents and damages out of pocket can financially hurt both the driver and policyholder. By using this web site, parents and teenagers can look at several companies at once and find the best car insurance quote available that meets their coverage needs. General liability may work for most, but comprehensive and collision coverage should be considered. Having additional coverage will help if a driver is involved in an accident with an underinsured or uninsured driver. In addition, in the age of electronics and gadgets you may wish to see which policies cover personal items in the event of them being destroyed, damaged or even stolen.

Reducing Coverage Costs through Driving Programs

Cheap teen auto insurance is not a myth if you know where to look, and you have found the right site to help. The sooner you begin your search for an applicable insurance coverage plan, the better chance you have of finding a lower rate. Using this web site is easy and can help make the process very convenient as you determine which coverage type applies to you and your young driver.

To help find cheaper, more affordable, car insurance for teenage drivers, parents and drivers alike may want to consider taking a certified driving course. Insurance companies recognize Graduated Driving Licensing (GDL) systems as a way to address high-risk behaviors that some young drivers exhibit. These systems reduce the number of occupants in the car and impose nighttime driving restrictions. While these guidelines are temporary, they allow the driver to gain experience on the road in real life situations, as opposed to a written course or simulated program. Two-thirds of the 50 states offer GDL programs. While some states have voluntary programs, others mandate participation and have regulations set up at a state level that will be enforced by law enforcement.

Your individual insurance company may also give safe driver programs. If a teen driver participates and signs a contract saying they will avoid risky driving behavior, like speeding, not wearing a seat belt or drinking and driving, they may be able to save up to five percent or more on their rates. Driving the car that is specified for the teen driver should always be a priority as well, as he or she may not be covered in another vehicle, which will result in more out of pocket expense. Comparing companies online will help you determine which insurers have programs and which do not. Even if the insurance company does not offer this type of program, driving education courses, through a school system, state program or private business, can go towards finding a reduced rate.

Other Car Insurance Saving Techniques

Just like age is a factor in finding cheap teen auto insurance, companies look at the type of vehicle a teenager drives. A sports car or sports utility vehicle may be on a child's wish list for their anticipated birthday, but a safer, more economical car can be easier on insurance rates and premiums. In addition, vehicles that still require payments to a bank, lender or dealership will require more extensive coverage than just general liability. Purchasing a secondhand vehicle will reduce your rates, rather than allowing the teen to drive the family vehicle. If a newer vehicle is your price range however, it should not be assumed that it would automatically be more to insure. Some new cars with the latest safety features are actually cheaper to insure. Another alternative is to treat yourself to a better car, and let your son or daughter drive the station wagon. Regardless of which vehicle purchase decision you make, putting the vehicle in a parent's name will reduce the rates. Companies see older adults as having more collateral than that of a high school student.

Good grades can pay off big in the search for a cheap teen auto insurance quote. Most insurance companies reward teenagers, and their policyholders, who have a B average or better. Studies conducted in recent years show there is a correlation between safer drivers and students who perform well academically. Those good grades in high school will pay off once more if your child is accepted to college. Many companies will offer lower premiums to students who are traveling to college.

Where you live can play a role in how much your insurance costs you, but when you are a teenager, it is not so easy to just pick and move to save a few dollars on insurance. However, if a family is located in a more rural part of a state they will have a lower insurance premium rate than their city neighbors. Telling your insurance company where you will be driving also helps. For example, if you will be mainly driving on the interstate and major highways that could affect your rate negatively, but if you are in a more suburb, rural portion of traffic that can help reduce your rate.

Every business, including insurance companies, has a competitive nature. Shopping around for the best coverage and cheapest rates is always an advantage and wise thing to do. A car insurance quote that will not break the bank is just a mouse click or two away. Before your teenager takes his or her driving exam, make sure you research all the ways to save and types of coverage that will help generate a better car insurance quote when the time comes.

 

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