As we all know, teenagers are the group of drivers that have the least ability to afford high expenses for car insurance, yet it is no longer a secret that they are paying more than an adult driver is required to. Teenagers may feel they are being treated unfairly, but insurance companies do have their own reason as to why they insure teenagers with higher rates.
First of all, studies show that drivers younger than twenty-five years old are the ones who get into accidents more comparatively, and teenagers fall into this category. They are involved in more accidents due to inexperience driving, and they have the tendency to drive recklessly and as a result, they end up making more claims. Parents can refuse to allow their teenage children drive until they are more matured. However, there are other ways that parents and teenagers can follow to make sure of the teenagers’ safety, but still manage to keep the car insurance rates down.
Since the teenagers have just started to drive on roads, they might not have a good driving record to back them up. Insurance companies do not know their pattern of driving, and it is hard for them to give reasonable rates. Therefore, teenagers must always drive carefully and not getting involved in any car wrecks to earn the confidence of the companies. Traffic offenses like speeding or driving under alcohol influence is definitely a big no-no as they will put bad marks in their driving records. When teenagers have driven long enough to earn a good driving record, it will speak for itself. Parents can also enroll them under defensive driving courses to provide them with additional safe driving skills, and they will likely obtain cheap car insurance for teenagers easier.
Insurance companies are not hard-hearted; all they want is to maximize their profits. Therefore, they might suffer from a loss if they give out cheap plans for teenagers as they have a greater percentage of making claims. However, as much as they want to minimize their loss, they will still offer discounts to teenagers who fulfill certain conditions. For example, for teenagers who do not have a good driving history yet, they can try to have good grades in school. Several insurance companies have discounts for students who score at least B average or higher in their subjects.
Another option available to get cheaper rates is to add the teenagers’ name to parents’ existing policies. Most of the time, this will double up the premiums, but it is usually cheaper than getting the teenagers their own policy. Moreover, the rates will decrease once the teenagers prove they are safe drivers. Adding teenagers as occasional drivers with an older car under parents’ policies will also help them to save a lot of money.
Finally, remember to shop around to get the best offer in the market. While this might consume some time, it is important to compare and do some studies on several companies so that the parents and teenagers do not miss out any great offers that are waiting for them to grab it. Cheap car insurance for teenagers is possible to obtain if they have the patience to search for it.