A Guide to Auto Insurance Coverage For Teens
Finding auto insurance coverage for teens isn’t difficult but it is pricey. Insurance rates are determined by the statistical probability of the insured being in an accident. Because drivers between the ages of 15 and 20 account for about 16% of reported accidents, teens pay the highest insurance premiums of any demographic.
But it’s possible to minimize the cost of auto insurance coverage for teens by understanding how the insurance business works. First though, remember that it’s important to shop around for an insurance plan as plans can vary by hundreds of dollars for the same coverage.
Keep in mind the various discounts offered by insurance companies when shopping for teen auto insurance. Most insurance companies offer a discount (as high as 25%) for students that maintain a B average. Similarly, teens who have completed a driving course can save about 10% on their insurance coverage.
The cost of auto insurance coverage for teens is also less expensive if the teenager is covered under a parent’s plan. In many states, this is required until the age of 18 but it makes sense to continue under a parent’s plan as long as possible.
Similarly, in picking your vehicle, remember that auto insurance rates are determined based on statistical risks associated with a particular automobile. Risk of theft, frequency of accidents and the cost of repair are the three factors that most determine a vehicle’s insurance rate.
For instance, the Buick Rendezvous and the Honda Odyssey are among the cheapest vehicles to insure whereas the Dodge Charger and the Scion tC are two of the most expensive vehicles to insure. Essentially, vehicles statistically driven by families are cheaper to insure and vehicles statistically driven by young people are the most expensive.
Another way of getting cheaper car insurance coverage for teens is to have a higher deductible. But beware: it’s important to select a deductible that you can afford because it’s no use to save money on coverage if you can’t afford the deductible after an accident.
By following these tips and knowing the insurance business, it’s possible to find affordable auto insurance coverage for teens.