Car insurance companies always have some sort of regulation that affects the price of their premiums. Whether it’s the type of car, the history of the driver, or even the age of the driver, sometimes car owners have to pay more for something that they just can’t help. Teenagers have the highest car insurance premiums of all drivers and finding affordable car insurance for young dirvers may take some work and advance preparation, but the money saved on insurance premiums is worth the effort. Here are some tips for finding cheaper car insurance.
How Insurance Premiums Are Calculated
Auto insurance companies have to base their premiums on the amount of risk that they are taking with a driver. Obviously, if there is more perceived risk then the rates will be higher to make up for that increased liability. They calculate the claim based on the chance that the car will be in an accident. They also have to figure in the cost of the repairs.
Convincing the Companies that You are Low Risk
The reason that it’s so incredibly hard to find cheap car insurance for young drivers is that statistically, individuals under the age of 25 are actually more likely to wreck a car and file an insurance claim. With the legal driving age set at 16 for most of the United States, this leaves 9 years of increased premiums until they reach 25, the age when the insurance rate will drop off quite a bit. Many companies also offer bonuses for time without an accident, and young drivers are obviously not eligible for this bonus until they’ve been driving awhile.
If you are hoping to find cheap car insurance for young drivers the first step is to figure out how to convince the car insurance companies that your youngster is less of a risk. There are several ways you can accomplish this, but to save time it is best you start before attempting to find lower rates.
Good Driver Proof
The first way to prove to the insurance companies that your youth is less of a risk is to prove they are a good driver. Most public and private high schools offer driver education courses. If the course is not offered by the teen’s school, a private driver education course may qualify for the discount. You’ll want to make sure that the instructors at these institutions are State Certified and that the program is approved by the DMV. In some states insurers must offer a 10% discount to any driver, including teens, who successfully completes a defensive driving course. The courses take about 8 hours and are available starting at around $30.00.
If a company sees that a driver has taken courses in defensive driving or advanced driving courses, then they can place them in a lower risk category. Being in a lower risk category can result in cheap car insurance for young drivers. A certificate from one of these defensive driving classes could reduce your insurance rates by 20%. It is a good idea to enroll your young driver in some form of traffic school or driving course as soon as possible.
Smart Grades makes for Smart Driving
Another good way to force the insurance companies to suggest cheap car insurance for young drivers is to prove to them that they are smart and can understand the responsibilities of being a safe driver. Students with good grades are statistically more likely to have better driving records and fewer accidents, meaning that it will cost the company less to insure them. Prove to the insurance companies that your young driver is smart by making sure that they do well in school and get decent grades. To be eligible for this discount the teen must maintain a grade point average of at least 3.0 and have a good school attendance record. Home schooled teens may not be eligible for the discount, but students at private and public schools can receive the discount if they qualify. A bonus is that i will also mean a better position in life for your kid, whether they intend to drive or not.
Drive a Safe Vehicle
A safer car will defiantly mean cheap car insurance for young drivers. This is because a safer car is less likely to result in injury or death, which a car insurance company will have to pay for. A safe vehicle, in the eyes of the car insurance company, is one that is relatively large, has 4-wheel drive, is a bit older (year 2000 or older) and doesn’t have a very powerful motor. Also make sure that the vehicle has airbags, anti lock brakes and other safety and anti theft devices installed.
Buy a cheaper car
The first thing you can do to bring down the cost of insurance is to purchase a cheaper car. Every premium-lowering method goes back to the fact that these rates are based on what the insurance company pays to repair the car. Cheaper cars with domestic parts and no expensive modifications can bring down your insurance quotes a lot more than you would think. The second way to get cheaper car insurance is to drive safely. Every traffic violation, accident, fender bender, or speeding ticket will increase the policy price, sometimes even if the accident was the fault of another driver.
Cheap is Not Always Best
In retrospect, sometimes finding the cheapest insurance policy is not the best idea when it comes to young drivers. As responsible as they are in other aspects of life, the statistics don’t lie, and they actually do have a much higher chance of getting into an accident. Because of this, a comprehensive full-coverage policy may be the best option. It may not be the cheap car insurance for young drivers you’re looking for, but it could turn out to be cheaper in the end. Often quality is more important than price, especially in something as essential as auto insurance.
Some words on affordable car insurance for teenagers
Teenagers are perceived to be unskilled drivers with the potential to be reckless or impulsive behind the wheel; unfortunately, there is some evidence to support this perception. In the United States, automobile accidents are the primary cause of death for people between the ages of sixteen and twenty, and car accidents involving teen drivers cost insurers more than $34 billion in 2006. The statistics don’t lie. Teen drivers are a risk and insurance companies charge accordingly.
As you’ve read above discounts are available for teen drivers, but most require that the teen spend some time and effort in taking courses, maintaining high grades and participating in community outreach programs. Therefore, by preparing two to three years in advance of the teen becoming licensed, will greatly increase the chances of finding the most affordable car insurance for your teen.
The Teen Volunteer Discount
Some companies may offer discount car insurance for teenagers who spend at least 4 or 5 hours a week engaged in volunteer work for community or charitable organizations. Parents can find out which volunteer activities qualify for discounts by contacting their insurance company. Teens who demonstrate they care for others are less likely to behave recklessly behind the wheel of a car. Some companies may offer discounts to members of the Eagle Scouts or Girl Scouts of America.
Remaining on a Parent’s Car Insurance Policy
Teens who are insured on the parent’s auto policy pay less in premiums than those who have a separate policy. If the teen owns his own vehicle, the family receives a multi-car discount. The teen is also eligible for other discounts, like customer loyalty discounts, earned by the parents. Car insurance for teenagers is cheaper when the teen remains on parent’s auto insurance, but the teenager must live in the parent’s household to qualify.
Often a parent with a teenager will simply add his or her teenager to a preexisting insurance plan rather than looking at insuring the teen with another, less expensive, insurance company. While some insurers offer discounts to parents who are adding teens to their coverage, it is sometimes more advisable to sign up your teen with another company. The key to finding the best and least expensive plan is to research your options with the various companies on offer.
Shop Around
Finally, the best way to get the cheapest rates for a younger driver is to shop around. Use online comparison tools like the one on this website to find out which car insurance company offers the best deal. It is also a good idea to determine who offers what student discounts and what the requirements are for your student to meet these discounts. Persistence and a little detective work represent your best chance of find cheaper insurance rates.
Don’t let the higher insurance rates keep your young driver off of the road. By taking the time to shop around and prove to the insurance companies that your young driver is less risk to them, you can reduce how much you spend on insurance.
Finding a cheap car insurance for young drivers doesn’t always need to take hours. The most important thing is teaching the child how to drive safely and be responsible on the road, and eventually the insurance will take care of itself.