Teen Insurance Rates

Teenage insurance rates are some of the highest among all drivers. There are several reasons why teenage car insurance prices tend to be significantly more than other drivers. Fortunately, teenage drivers are able to reduce their rates through safe driving and finding discounts that can help them save.

Why Teenagers Pay More for Insurance

Insurance companies rely on statistics to help in deciding how much customers should pay. Insurance companies base their prices largely on risk. Because teenagers are new and inexperienced drivers and statistics show they are involved in accidents at a much higher rate than other age groups. Also, insurance companies do not have as much
history on the driver to base their rates off of.

Unfortunately, thousands of teenagers die in accidents each year, especially drunk driving accidents. Additionally, teenagers are statistically less likely to wear seat belts.

How to Reduce your Teenage Insurance Rates

If you are a teenager, the best way to save on insurance is to be added to your parent’s policy. After several years of accident-free driving, your rates should begin to decrease but teens should try to stay on their parent’s policy as long as they can.

There are several things teens can do to reduce insurance premiums:

– Get good grades; many insurance companies offer discounts to good students.
– Take a defensive driving course or extended driver’s education.
– Drive a safe car. Cars with high safety ratings have lower premiums, as do cars that are inexpensive to repair. They will also likely provide better protection in an accident.
– Agree to pay a higher deductible. The higher your deductible, the more money you need to pay out of pocket if you’re in an accident; your monthly premiums will be much lower, however.
– Skip collision and comprehensive coverage. Many teens receive older models of vehicle as their first car; because the car isn’t worth much, it may not be worthwhile to carry full coverage.
– Avoid texting while driving and talking on the phone while driving without a hands-free device

photo credit: Jhaymesiviphotography

Safe Driving is Key to Low Insurance Rates

Teens pay more for insurance than other drivers, but they are able to lower their rates by playing an active role in their insurance. By driving safely, you can guarantee lower rates for yourself in the future, which can pay significant dividends. One area where teens are also susceptible is texting while driving. See our article on teen driving safety tips for more information.

Safe driving helps everyone, both by decreasing insurance costs and keeping the roads safe for drivers of all ages.