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Pay as You Go Insurance for Teenage Drivers

These days, a lot of drivers are opting to go with car insurance providers who give them the option to pay for only the miles that they drive each year. This is a pretty new concept, but a lot of different companies have employed it in the recent past. These programs work by installing a counter in your vehicle that reads how many miles you drive per year. Based on what your readings are, then you are assigned a premium for your yearly mileage. This is a great way for you to save and keep track of how much you drive.

These kinds of policies are actually great for teen drivers to take advantage of, and more parents should consider this option when signing up for insurance for their teens. As far as teenage drivers go, they are usually the most expensive type of driver to insure regardless of how their car mileage affects rates. This is due to the fact that they have little experience on the road. As such, their rates are often really high. Pay as you go insurance, though, could limit a teen's time on the road an end up actually saving them money in the long run.

Why These Policies are Ideal

A pay as you go car insurance policy can really work wonders for your teen. Firstly, these policies can be used by parents to limit their teen's driving experiences to just the necessities, such as getting to work or school. A lot of teenage drivers like to get out there and joy ride when they get the chance. When parents choose this policy and strike an agreement with the teenage drivers, then this will mean that their teens are more likely to use the car for the proper purposes and not something else.

In cases where this type of insurance is not designed to curb a teen's driving, it is actually already a great idea. Pay as you go insurance is going to work out the best for drivers who do not have to use their cars often. Teenagers, because they spent so much time at school or studying, do not need to use the vehicles that much for pleasure. Since this is already the case, it's a good idea to try and get a good discount off of how little time your teen spends behind the wheel.

Discussing Options with Your Teen

If you are considering going with a pay as you go policy for your teen, then you should sit down and have a conversation. First, your teen needs to know what this kind of policy entails and how his or her driving is going to be measured. If your teen does not take the time to understand how these policies work, then he or she is probably going to end up using the vehicle in the wrong way. That will just end up costing you a lot more money in the end when you have to pay for extra miles.

A great way to make sure that your teen understands everything that goes along with getting a pay as you go policy is to sit down with them and come up with a driving contract. Parents often use them with children, and it's a way to make sure that your teenagers turn into really responsible drivers later on in life. You can easily make the amount of miles and places where teens should do a part of this contract, and this will ensure that you teen will have no trouble understanding what pay as you go insurance for teenage drivers means.

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