Cheap Auto Insurance for Teenagers

Posted by Harry Wagner
car insurance for teenagers

The tips found here and quote comparison can help one get affordable teen coverage.

Is your teen studying to test for their license? If your teen has finally proven to you that they are responsible enough to get behind the wheel, you may be experiencing a roller coaster of emotions. You are excited you do not have to drive your teen to and from the mall, you are worried about their safety, and you are terrified to discover how much your auto insurance premiums will go up once you add your licensed teen. If your teen has a permit, you have gotten away with receiving coverage for your inexperienced driver without premium hikes for 6 months or more, but you will be paying the cost in the upcoming months. If you want to find cheap auto insurance for teenagers, read this straightforward guide and understand everything that you need to know as you compare auto insurance rates.

Why Are the Rates For Teenagers So High?

You need to understand how auto insurance rates are determined to understand why premiums for your newly licensed teen are so high. Insurance companies base rates on risk, and the more risk that is present, the more you will pay. While your teen does not have violations or accidents, they are still risky because they lack experience on the road. In fact, drivers in the age range between 16 and 24 have the highest accident rate of any age group. With statistics showing that this age group is risky, premiums are high. Teens with tickets or accidents will pay rates that are surcharged beyond the already high base rates.

Tips on Finding Cheap Auto Insurance for Teenagers

Rates for teenagers will be higher than the rates for an experienced driver with 9 or more years under their belt, but there are ways to find affordable coverage. The key is to request auto insurance quotes with your teen as a listed driver. By comparing rate quotes, you can see which companies welcome young drivers and which companies do not.

Consumers need to understand the fact that auto insurance companies are in the business to make money. Just like all other businesses, insurers will target a specific demographic. If the company is not interested in a specific demographic, the company will set rates to be priced out that market. This is why some insurance companies offer premiums that vary so dramatically. Using an online rate comparison tool will help you gain the power as the consumer so that you can identify just which companies really want policyholders with a teen driver in the household.

As soon as your teen is licensed you will need to add them to your insurance to ensure that there is protection while they are behind the wheel. You should take the time out to see if your current insurer is offering competitive rates by requesting auto insurance quotes from all of the leading companies that serve your area. Be a wise consumer and get the best rates and all of the discounts you deserve. Taking action could save you as much as 30% off of your teen’s premiums.