Minggu, 02 Juli 2017

Cheap Teenage Car Insurance

One of the most frightening times in the life of any parent is when a son or daughter reaches the age when they can legally obtain their driver's license. Not only is it worrisome that their child will be driving without adult supervision, but quite often the cost of automobile insurance is prohibitive to the average family. While most insurance underwriters would like to be able to provide cheap teenage car insurance, it is not practical from a business perspective. Statistics prove that fatalities are highest among teenagers even though they drive fewer miles than older drivers.

Those same statistics issued by the Insurance Institute for Highway Safety (IIHS) and the United States Department of Transportation Fatality Analysis Reporting System (FARS) also indicate that most of those accidents transpire when other teenagers are in the vehicle with a teenage driver. Teenage drivers are in the highest demographic risk factor, so insurance rates are apt to reflect the greater risk involved in insuring young, inexperienced drivers. Although insuring teenage motorists can be quite costly, there are steps that a parent can take to keep premiums to a minimum thus making a policy affordable.

Graduated Licensing Systems, Driver's Education and Safe Driving Courses

Most states have instituted some manner of 'Graduated Licensing System' that grants driving privileges to teenage drivers in stages. Laws vary from state to state, but for the most part, young drivers begin with some form of learner's permit and gradually advance to be allowed to drive from dawn until dusk without passengers, with passengers and finally after dark. Many insurance underwriters base their rates differently in states that offer a graduated system because of the reduction in risk involved.

Many underwriters also offer discounts to young drivers who have completed a driver's education course, a safe driving course or maintain a certain grade point average in school. In fact, many states will not allow teenagers to get an operator's license until the age of 18 unless they are in school or have graduated from school. A parent may not be able to find cheap teenage car insurance based on meeting these educational requirements, but rates will certainly be 'cheaper.'

Vehicle Consideration

Insurance companies heavily base their rates on the type of vehicle to be insured. While it is tempting to purchase a sporty vehicle as a 'status symbol'; for a teenager who gets his or her license, those types of automobiles carry much higher premiums. Small vehicles and sports cars are among those that carry the highest rates as well as older model vehicles that don't have safety features like ABS and air bags. A mid-sized car that is fully loaded with optional safety devices would carry a greatly reduced premium as opposed to a huge older model car with hardly any safety features at all. Underwriters base their rates on statistics, so choosing a safe year, make and model will significantly lower rates.

While there is really no such thing as 'cheap teenage car insurance' it is possible to find 'cheaper' teenage car insurance. The internet is an invaluable resource so search around and compare quotes. It's amazing what is out there just waiting to be found.
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