Teenagers lack driving experience, so insurance companies consider them a high risk to insure, and the premiums assigned to them are much higher than an adult’s insurance rates would be. There are a few things that can done to help reduce the rates you pay for your teen drivers.
You must first point out to your teen driver, the importance of not getting speeding tickets or traffic violations and having no accidents to blemish their driving most cases, their safe driving record will be rewarded with lower premium costs after a period of you purchase your teen’s auto insurance with a higher deductible it will make their premiums go down; the more the deductible is, the less the premium is.
When you make the purchase of a vehicle for your teenager check the rating class on your intended purchase; do not choose one that falls into the sports car rating class or a high risk class rating, but do choose a vehicle that is well built with added safety features.
The graduated licensing laws now are effectively being used in most states in the USA and in some provinces in Canada. These graduated licensing laws will vary from one location to another, but the basic philosophy behind them is to restrict new drivers by limiting what their license will allow them to drivers may be issued a full auto license, such as a class 5, but there is usually a letter designation behind it to indicate they are a new driver.
New drivers usually have night time driving restrictions, vehicle occupant restrictions, and a 0 alcohol tolerance restriction; they will also be required to take an additional test, after a specific period of time, to remove them from the new driver status.
If you are still wondering where to get cheaper auto insurance for your teenager, the solution to your dilemma could involve the purchase of a stand alone policy from an agency that specializes in providing teen insurance. A stand alone policy will not be adding them to your policy as an additional driver, because they will be carrying their own insurance.
The risk for insuring teens is reduced for these companies, who issue this type of policy, through the placing of certain concessions on the driving habits of teens. These insurance companies may implement some of the various restrictions, like the requirement of driving school or no driving after dark to help keep the premiums lower for teen drivers.
The best thing you can do for your teenager and his or her insurance rates is to teach responsibility and make them earn the use of the car by being trustworthy and by helping to pay insurance costs.