The aforementioned rates pertain to fifty year old amas and sixteen yearold drivers who share a household and have a car in their possession, which is insured fully, and the family resides in either Hawaii or Massachusetts, where the only thing that affects the premiums is age and not gender. Premiums are rated according both to age and gender in all other states.
Adding your teenager may help reduce the cost of the coverage provided they have a good record with regards to driving. Young drivers who have a clean record also tend to get discounts when they take a defensive driving course which is available to them.
-
Do Not Buy An Expensive Car
All of the young drivers are required by law to have a car coverage which they tend to pay more in most cases since they do not have ample practice of driving hence seen as a risk as they are first timers . As per the law, an inexperienced driver is viewed by an insurance company as one who would be operating a vehicle that is completely uncontrolled.
Looking for other alternatives on a car may be hard for someone who has just learned how to drive but they do not have to worry because their guardians will be there to steer them to the acquiring of a vehicle that fulfills all their demands. These vehicles will also be much independently rated which means they will have them insured at a much lower rate compared to the family sedan. It is also advisable to get vehicles fitted with safety features as they are known to get the premiums dropped. There are several comparison sites that allow potential clients to view side-by-side auto policy pricing.
Lemonade has a self-driving based method through which users who practice safe driving are rewarded with up to 40% discounts on their bill. Their app assesses components like sudden braking and acceleration to determine the driving score of a driver which is updated in real time and helps decide the respective insurance cost.
-
Increase the time gap between moving tickets and other incidents
After few years of driving, young drivers tend to pay lower rates for car insurance. By 24, average premium prices can start to dip lower and lower as long as a clean driving history and a good credit score is available in many states.
Even so, a lot of young drivers are still finding that the cost of car insurance is still expensive. Any accidents or at-fault incidents present in the young drivers’ history tend to make the premiums rise, thereby making it extremely important to ensure that the history is as clean as possible so that cheaper premiums can be maintained.
Car insurance can be thousands of dollars less in cost for teenage drivers who get added to their parents’ policy. This is a good option according to The Zebra, as insurance for teenagers can be a lot cheaper.
Young drivers can also reduce the level of the insurance investments by implementing the telematics programs. Using in-vehicle monitors that record the driver’s actions, such as fast acceleration and abrupt braking, these telematics programs gather data about the drivers in order to then compute a safety index for them – thus in the long run, resulting in lower insurance premiums.
-
Complete a defensive driving class
Getting into a car collision is a horrible experience in terms of emotional and financial aspects. Repair costs together with the medical expenses, loss of earnings and costs associated with regaining a license can easily accumulate – moreover, the whole process in some states can be quite expensive and tedious as well.
The purpose of these courses is to teach drivers some tactics that allow them to avoid an accident and keep the costs on insurance reasonable. Included in such classes are lane discipline, tailgating, aggression control in driving; and how to manage stress and feeling angry or tired when driving.
Active defensive driving courses will allow participants to receive between 5 and 10 per cent discount off the premium of their auto insurance thus making it worthwhile in the long term especially for the younger drivers.
Besides the discounts for defensive driving, there are other discounts that can be looked out for while looking for an insurance provider and which can quite help in providing manageable premiums. One example is the discount available in combining home and auto policies, while others may reward the purchase of insurance cash for being a good student or joining certain clubs or fraternities and sororities.
-
Good Student Discounts
As expensive as car insurance is for older drivers, it is particularly costlier for young drivers. However, finding options for good student driver discounts tends to help offset that cost when applied meeting those criteria. Generally, student discounts help reduce a cost of around 10%-25%, and in order to avail them, a good student must be a full-time student with a B grade average or higher (homeschooled students may qualify through other methods such as being on the dean’s list or scoring in the top 20 percent on standardized testing may qualify as well).
Those who opt to undergo extra classes on driver education could potentially lower the amount they will pay for their car insurance premiums, but be sure to check with your insurer to see which courses qualify first.
Progressive seems to have such non merit related discounts such as those for young drivers who are students and are far away and do not have their cars with them at school, This in essence allows families whose child lives more than 100 miles away to pay less in premiums. USAA too has a program called accident forgiveness that allows one to hoard the rates for three years without incurring extra expenses that they may have otherwise.
-
Look around
In most jurisdictions, parents stand a chance of saving by insuring their teenage child under to their motor insurance, but it is advisable with caution and it may be more beneficial for young adults to have their own motor policies.
Insurance companies incur costs due to insurance claims made by customers and therefore they have to push all the costs to the customers especially those who are high risk in this case the teenage customers, In order to obtain better rates, go to the market and see what other options are available (this should also be done every time your policy renews). For this purpose you need to devoid novelty.
In conjunction with attendance of defensive driving schools, the insurance providers along with their medical workforce render financial literacy to teenage drivers with no previous claims in the past and accept a favorable status. Additionally, insurers often aid with discounts for “good students” if their teenager holds an average grade of a certain CGPA; many providers even give ‘good student’ discounts to students having a good average score! Also, for the requirements to be eligible for these discounts, a certain GPA has to be achieved by students!
Teenage drivers are reportedly well catered for by several national insurers such as State Farm, GEICO and USAA, who provide these services at lower rates because of the good AM best rating, low complaints, and the fact that they offer these services to larger populations. Moreover, each of them has a number of other advantages, e.g., discounts on home/auto action, bundling discounts, increases in collision and comprehensive deductibles which would also lead to a reduction in rates as more amount of risk are taken by these insurance companies.
