If your children are approaching the age of driving, you may be wondering how to save money on insurance or even whether you should add them to your coverage at all. If so then these tips for teen car insurance are going to help you a lot. Annual insurance policies for juvenile drivers can cost upwards of $1,000.
It is expensive to insure teens. Rates of Insurance firms are based on accident risk. After all, the higher the danger, the more likely they are to be sued. Who are the world’s riskiest drivers? Teens. According to the CDC, drivers aged 16 to 19 are four times as likely to crash than other drivers. Even while teens make up only 14% of all the drivers on US roads, they account for roughly 30% of all auto-related injuries. That elevates the stakes for insurance companies — and puts kids and parents at risk.
Auto crashes are the most significant cause of death among youths. Three thousand teens were killed in car accidents alone in 2009. Compared to females, male teenagers are at considerably greater risk. By identifying and reducing risk factors, insurance costs can be reduced, and teen safety can be improved. The most common risk factors are inexperience, failure to recognize hazardous situations; irresponsible and aggressive behavior; distractions from people in the vehicle, and, of course, drunk driving. Addressing these factors will make your teen a safer driver. Here are these tips for teen car insurance and new drivers.
1: Go to School and do well
There are many reasons to do well in school, but you may not know that good attendance and a high GPA might save you money on vehicle insurance. With some insurance companies, students who maintain a `B` average or 3.0-grade point average on a 4.0 scale may qualify for a 5-10% discount.
There are other ways to reduce insurance costs. Taking a driver’s education or safe driving course might save you up to 15% on your insurance.
If your adolescent driver is attending college away from home, most insurance companies will allow you to remove them from the coverage until the conclusion of the semester. There may be a 100-mile minimum requirement (161 kilometers). Although it seems strange, a student going to school 80 miles (128.75 kilometers) away from home will regularly commute in the family minivan.
2: Drive wisely
Accidents are a sure-fire method to raise your insurance rates. The best way for adolescent drivers to keep their rates down is to drive safely. All claims will raise your premiums, void any “good customer” discounts, and cost you a lot of money in the long run. We’re not just talking about fatalities (which are to be avoided). The cost of insurance rises after any collision.
Don’t think you are safe just because you weren’t at fault. Speeding tickets, rolling stop signs, reckless driving, and other moving infractions will affect your driving record and raise your insurance premiums. If you are found driving drunk, you’ll face fines and even license revocation.
3: Get a Safe to use car
The teen’s car has a massive impact on the insurance rate. Ignore the myths regarding auto insurance cost — color doesn’t matter. The car’s manufacturer, model, and year are vital determinants. Buying a new vehicle is substantially more expensive than insuring an older car. High-performance cars with loads of power can cost a lot to insure.
This doesn’t imply you should buy your teen a junker. Modern safety equipment like anti-lock brakes, airbags, and stability control reduce premiums. It is possible to check national crash test statistics to see which cars are the safest.
It is not just about safety. Insuring a thief magnet car will cost more. The National Insurance Crime Bureau has stolen car statistics. This also brings up one of the rare circumstances where a teen’s insurance is less expensive than their parents’ insurance. If both parents drive flashy, high-performance cars, a separate policy may be less expensive.
4: Deductible Increase
You’ll be responsible for paying a deductible if you file a claim. Once the deductible is satisfied, the insurance company takes over. A high deductible? Why on earth? Higher deductibles lower premiums.
Increasing your deductible to $1,000 is a calculated risk. You’re hoping your adolescent won’t get into an accident. If they do, a minor accident will be covered by your deductible. The $1,000 will seem like pennies in a severe accident compared to the insurance company’s coverage. Raise your deductible, talk to your teen about driving safety, and cross your fingers.
5: Consider no insurance
Parents often ask, “Do I need to insure my teen at all?” We can’t answer that because this article isn’t intended to provide legal advice. Before making any insurance decisions, make sure you understand your state’s laws and insurance company policies.
But if you want the truth, here it is:
Your insurance company is aware of your children’s ages. They know that certain firms will add them at 16. Don’t forget to tell the insurance company.
If your teen rarely or never drives the family car, you can probably avoid insuring them. Any accidents your teen has while uninsured should be covered by your insurance, just like a friend had borrowed the car. The insurance company is unlikely to deny the claim. However, they may need you to pay retroactive premiums since the teen’s first license.
Your insurance provider may decline future claims if your teen smashes the car before you inform them that your teen has a driver’s license and has been driving. Not naming a teen driver might be regarded as a violation of that clause and cause the insurance company to deny the claim. In the end, you are considerably better off insuring your teen.
Consider this scenario: Your teen rear-ends a Lexus that costs $50,000. Let’s say the Lexus is damaged by $8,000 in the accident. They deny the claim because your kid wasn’t on your policy. Whatever your deductible is, enjoy paying that $8,000 out of pocket. We haven’t even touched on car maintenance. So, be honest with your insurer. Follow these tips for teen car insurance before buying coverage.
Learn more about teen auto insurance at newautoinsurance.com.