If you're a parent of a new teen driver, you might be wondering how you can save on your heft insurance premiums. In fact, you might be wondering why in the world these premiums are so high in the first place. This FAQ should help you understand how you can trim some costs on your teen's insurance premiums.
Q: Why does teenage car insurance cost so much?
This is simple to answer. Insurance companies are all about quantifying risk. The riskier something is, the more they charge to insure it. It is a proven fact that new teenage drivers are much more accident prone than their adult counterparts, and thus their rates are much higher.
Q: What kinds of cars offer the lowest insurance rates for teens?
One thing is certain: sports cars most definitely do not offer the best rates. In fact, they are often ludicrously high for teen drivers. Stick with mid size vehicles with good safety ratings. Your young driver might not be happy with having to drive such a "boring" car, but it will be worth it when it comes to safety and savings on premiums.
Q: Should my child carry their own policy, or be added to mine?
It is almost always cheaper to add your teen onto your existing car insurance policy than to set up their own account. Even if they are paying for it themselves, you'll want to add them to your own plan to save some money. It just works better this way.
Q: Can my teen get a good student discount?
If your young driver is getting high enough grades, the answer to this question is "yes." Different companies have different standards for giving out good student discounts, but they are always worth applying for. Ask about this when setting up your policy.
Q: Are drivers education courses a good idea?
Drivers ed courses are a great idea. Not only will you save some money on your insurance, but your teen will also learn essential skills for the road. Insurance is great and all, but the best insurance is not crashing in the first place! Taking a driver's ed course can help this happen, though there are no guarantees of course.
Hopefully this has helped answer some of your questions concerning car insurance for young drivers. If you follow these guidelines, you should have any trouble saving some money every month.
Q: Why does teenage car insurance cost so much?
This is simple to answer. Insurance companies are all about quantifying risk. The riskier something is, the more they charge to insure it. It is a proven fact that new teenage drivers are much more accident prone than their adult counterparts, and thus their rates are much higher.
Q: What kinds of cars offer the lowest insurance rates for teens?
One thing is certain: sports cars most definitely do not offer the best rates. In fact, they are often ludicrously high for teen drivers. Stick with mid size vehicles with good safety ratings. Your young driver might not be happy with having to drive such a "boring" car, but it will be worth it when it comes to safety and savings on premiums.
Q: Should my child carry their own policy, or be added to mine?
It is almost always cheaper to add your teen onto your existing car insurance policy than to set up their own account. Even if they are paying for it themselves, you'll want to add them to your own plan to save some money. It just works better this way.
Q: Can my teen get a good student discount?
If your young driver is getting high enough grades, the answer to this question is "yes." Different companies have different standards for giving out good student discounts, but they are always worth applying for. Ask about this when setting up your policy.
Q: Are drivers education courses a good idea?
Drivers ed courses are a great idea. Not only will you save some money on your insurance, but your teen will also learn essential skills for the road. Insurance is great and all, but the best insurance is not crashing in the first place! Taking a driver's ed course can help this happen, though there are no guarantees of course.
Hopefully this has helped answer some of your questions concerning car insurance for young drivers. If you follow these guidelines, you should have any trouble saving some money every month.
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