Thursday, October 28, 2010

Tips in Buying auto Insurance for TEEN DRIVERS

Teenagers are unfortunately the face of several statistics in the car insurance industry. The leading killer of young adults ages 15 to 20 is car crashes. Compared to adults ages 25 to 64, these young adult drivers are three times as likely to become involved in a fatal car accident. Also, the younger the driver, the more accidents are caused. Statistically, 16-year-olds have a crash rate three times as high as 19-year-olds and six times as high as drivers in their early 20s. Adding a teenage driver to your car insurance plan can more than double the cost of what you pay for your car insurance. However, there are ways that you and your teenager can lower the cost of your teenage driver’s insurance.

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1. Receiving Good Grades
Your teenager receiving a B or better grade point average can result in a discount on your auto insurance ranging from 5 percent up to as much as 25 percent. This discount stems from the studies which correlate good students with being responsible drivers. By performing well in school, your teenager is showing to your insurance company that they take responsibility seriously and will not be large risks on the road.

2. Taking Driver’s Education Courses
If your child takes a driver’s education course in high school or through a company, this can also decrease car insurance for teenagers. Although insurance companies vary on the discount amount and the course approval, the discounts can range up to 15 percent. These courses can show your teenage driver the ethics of driving and the rules of driving on the roads. The cost of car insurance for young drivers can be decreased and they will become safer drives with the help of these courses.

3. Buying a Safe Car
There are many types of cars on the market today, including small cars, trucks, sport cars, and SUVs. All of those cars are unreliable or dangerous for your teenager to drive. Small cars do not have good protection in an accident, trucks and SUVs are prone to rollovers, and sport cars can discourage safety.

To help lower your insurance rate, consider purchasing a safer car for your teenager to drive. To find a safe car to lower car insurance for teens, look for a car equipped with airbags. Airbags will help save the life of your teenager in the event of an accident, and may qualify for a premium discount on your insurance. If your car also comes with a safety alarm, this can also be eligible for a percentage off on your insurance.

4. Enlisting in Safe Driver Programs
Enlisting in a safe driver program offered by your insurer will kill two birds with one stone. The completed program will offer a discount of up to 5 percent on the insurance, as well as instructing teenagers on the perils of drinking and driving. They will learn the consequences of running red lights or stop signs as well as speeding. Even if your insurance company does not provide a decrease in your automobile insurance for teens, this will help in the future when your driver is on the road. A few speeding tickets or minor accident caused by a teenage driver can send your auto insurance through the roof. By taking this preemptive measure, you can stop the risk of that happening.

5. Driving an Older Car
Insurance companies tend to give lower rates for teenagers driving old and heavy cars. Records show that older cars are less prone to accidents and harder to drive recklessly than newer models, which can encourage customers to remove collision coverage from their insurance policies. With a safer old car and the extra fee removed, this can decrease the cost of the insurance. In addition, some companies tend to assign the most expensive insured driver—your teenage child—to the most expensive insured car. To counteract this and save money, consider buying an older car for your teenager. Even if it is not used most of the time, it will still be let you end up with lower car insurance payments.

Always compare rates between insurance companies when adding a new teenage driver to your car insurance. If another company is offering a better deal than your current insurer, it may be in your best interest to go with the new insurers. Be sure to teach your teenage driver responsibility on the road through safety courses, and your car-insurance-paying wallet will be sure to thank you.

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