Getting a license and driving independently for the first time are exciting and momentous steps for any teenager. However, auto insurance prices for teens present a real challenge.
- Why are Auto Insurance Prices for Teens so High?
Unfortunately, teenagers are categorized as high-risk drivers and thus the most expensive group to insure. Teenagers have the highest incidence of driving offenses, collisions, and the costliest accidents. These statistics are often due to lack of experience and overconfidence.
As each birthday passes, teenagers will see that premiums go down in cost. For those on a tight budget, we have collected some useful advice on getting the most for your money.
By being added to a parent’s insurance plan, auto insurance prices for teens are typically more manageable. Most insurance providers will offer this option, especially if the teenager is going to be driving a car owned by the parent.
This option can literally save you hundreds of dollars compared to taking out an individual policy for a young driver.
Installing a black box in young person’s car, though, can help combat these assumptions and lower insurance costs.
Many companies, from All State to Progressive, offer insurance options with black boxes, actually telematics devices, that record your driving habits. These black boxes will make note of whether the young driver is texting, driving aggressively, or being distracted.
A black box is a great potential money saving option if you are confident in the young driver’s ability and discipline. If you are afraid that this young driver may be careless, be sure to avoid this option, and it can end up biting you in the back.
- How a Teen Can Drive Insurance Rates Lower
Another easy way for teenagers to get discounts on their auto insurance is to make sure they take an optional driver safety course. First-time drivers are required to log 50 hours of practice with an experienced driver. However, a formal driver’s training course or additional safety classes can earn a teen up to 10% off their premium.
Most insurance providers will also offer discounts to teenage drivers that maintain good grades. Keeping test scores at or above a ‘B’ average can translate to a discount of up to 25%.
The type of vehicle a teen drives can also have a big impact. For example, the rates on a high-performance sports car are always set at a more expensive rate than a car with a great safety rating. Expensive and specialized cars that require costly repairs simply cost more to insure.
A safe, reliable, less flashy option will certainly bring down auto insurance prices for teens.
Finally, the biggest factor affecting teens shopping for auto insurance is their driving record. Young drivers are harshly penalized with huge premiums for tickets, DUIs, or causing accidents. A single DUI charge can double an auto insurance premium and multiple offenses can lead to the insurer refusing to renew a policy. Safe driving keeps insurance costs low, period.
Auto insurance prices for teens can lead to major sticker shock. Luckily, there are a number of options, from piggy-backing on a parent’s policy to maintaining good grades and a clean driving record, to make things more affordable.
Most importantly, give us a call at Affordable Insurance. We’ll find the best possible rates and the best possible coverage. Let us help your teen enjoy their new freedom while providing you with peace of mind. Call or contact us today for a quote!