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16 Year Old Car Insurance

16 year old car insurance is kind of a double edged sword in some ways. On one hand, it represents up to this point the greatest day in many teens' lives, when they finally can get behind the wheel and taste the freedom that comes with the ability to drive. For parents, it can be a day filled with pride tempered with trepidation or fear for the child's safety. But beyond all of this emotion, there lies the additional element of finances. Getting affordable auto insurance for a newly licensed teen is quite a challenge, to put it mildly. Finding affordable ways to get a teen legally insured is a goal of many parents and teens themselves.

Sixteenth Birthday a Huge Celebration

One of the biggest milestones or rites of passage for anyone growing up is reaching the age when they are able to drive on their own for the first time. Most teens wait impatiently as the day approaches and make detailed plans to get out and take the necessary exams so they can get that license on their birthday or as close to it as possible. At this age, teens often feel that they are ready to take on anything. They are confident behind the wheel, ready to get out on their own and leave their parents back home. Of course, statistics bear out that this exuberant confidence may be unwarranted, as drivers in their first year of licensure historically have the highest accident rates of any age group.

Auto insurance for teens is extremely expensive for one reason, albeit a good one: risk. Auto insurers know based on historical data that taking on a teen as a consumer of their insurance products represents a significant risk on their parts. So to mitigate this risk, they have to charge more for coverage. In fact, young drivers continue to pay a surcharge for their youth and inexperience often until they reach the age of 25. But for the youngest ones, this surcharge is particularly high. As a driver, until you have established a track record of your own, the insurance company representing you only has the historical data for your age demographic to go by. So, we spend the first decade or so of our driving lives either disproving that data or affirming it, depending on our performance.

Initial Rates High for Teens

But in the meantime, rates are set high based on that loss history for the demographic which those 16 year olds are a part of. Parents of these youthful drivers are normally very aware that these high premiums are coming. It is another reasons why parents maybe aren't quite as thrilled about their teens that licensure is coming. The lack of experience behind the wheel is just too much for insurers to overlook. Providers have to charge much higher premiums just to recover their substantial losses across the board for teen accidents. From a family standpoint, both parents and teen should look at the situation that financially can only be improved so much. There's nothing you can do to get to age 25 any faster, so you just have to control the things that are controllable and stop worrying about the rest.

Tips for Affordable Teen Insurance

Getting a youthful driver into an affordable policy will take time and effort, and more than a little brainpower. There are a few options for coverage that are worth exploring, and it is certainly advisable to shop around for prices to save on your family premium. Getting as many prices together as possible gives you the best chance of snagging a decent deal. In general, it is cheaper to include a teen as a secondary driver on a family policy, though it never hurts to explore getting him his own policy as well. Look into it both ways and cover all options diligently.

For this age group, high risk specialists may actually be able to offer the lowest premiums. Insurers who target preferred and standard drivers may not be able to do as much for them pricewise, and some may not even be interested in trying. Again, it is good to get prices from multiple carriers and multiple sources. It should also be noted that the lowest price is not the only consideration. Good, dependable protection is extremely important, especially at this age when the risk of a mistake is so high and so much may be at stake.

16 year old car insurance is never going to end up giving you the cheapest policy. Teens are high risk clients for insurers to take on statistically. But with some common sense and due diligence, you can do a lot to minimize the cost of your teen's policy and save as much as you can.


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