Car Insurance Rates for Teenagers
Car insurance rates for teenagers are quite high compared to the national average. While your state average may vary from around $1000 to $2500, teenagers can expect rates that are double, even triple their state average! This may seem unfair, especially considering teenagers are usually the ones that have the least amount of money to spend on their annual coverage, but this is how it works. So why are car insurance rates for teenagers so high and, more importantly, what can you do to lower your rates and get a better deal?
How Car Insurance Rates Work
Auto insurance rates for teenagers are calculated according to their risk level. Teenagers tend to pose a high risk on the road for two separate reasons. First of all, teenage drivers do not have the experience on the road to warrant a good discount. Lower premiums are typically reserved for those that have been driving for at least five years and have no claims or accidents during this time. Secondly, car insurance rates for teenagers are also higher because, statistically speaking, the most common age category for car accidents are teens.
Car insurance agencies will offer the lowest prices to those that come with the lowest risk level. Teens pose a high risk of needing to make a claim and thus the insurance companies may lose money. In general, those under the age of 25 will be stung with the highest rate quotes. Male teenaged drivers are also more likely to experience higher car insurance rates for teenagers simply because males are more likely to be into an accident. Teenage male drivers also tend to show more aggression on the road and are caught for reckless behavior such as DUI arrests, speeding and distracted driving.
Lowering your Premium
The most unfortunate thing about car insurance rates for teenagers is that most teens simply cannot afford to pay sky high prices. After all, most teens are still in school and either working only part time or not working at all. They do not have a lot of money to toss around and any money they do have is usually going into a savings account to save up for college or their own car. Many teenagers will compensate for the high insurance premiums by only purchasing basic coverage. While this is one way to save on your annual coverage, it is not the best way to do it. After all, if you are ever in a car accident you could be looking at several thousands of dollars in out of pocket expenses if you are not fully protected. .
There are several ways to lower your premium when looking at vehicle insurance group ratings for teenagers with succumbing to basic coverage only. One way to do this is to remain on your parent’s policy for as long as possible. Ask Mom and Dad to name you as an occasional driver on one of their cars. That way, you will be licensed to drive it and covered under their policy but you will not be stung with such high rates. Then, after a few years on their premium, you will have gained the experience on the road to head onto your own policy without being stung by such high prices.
If you are driving your own car but still live at home, then ask your parents to consider a multi car policy which means that all your vehicles are piled onto one policy. You will be able to save this way and it can be a lot easier to manage as well. You may need to contribute to the annual insurance bills but you will also be looking at better rates for the entire family.
Car Insurance Quotes Online
Another way to lower your automobile insurance rates for teenagers is to prove yourself on the road. You can do this in a number of different ways. First of all, consider a driver’s education course which can help boost your credentials. There are several different companies that provider driver education courses for teenagers and can help you learn the rules of the road faster. Second of all, be a responsible driver every time you hit the highway. This means driving the speed limit, remaining in control, avoiding distractions and avoiding the roads during wet weather conditions, at night or during rush hour when car accidents are more likely.
Finally, you can also stand to save on your car insurance rates for teenagers if you compare the various quote options out there. Every provider is different; some will offer better rates for teenagers than others. With an online search you will have instant access to a number of providers and policies so you can be sure that you are insuring under the most affordable one.
