How to Reduce the Cost of Car Insurance for Your Teenager
A Insurance Article Contributed by Serena Haneline
The High Cost of Car Insurance
Car insurance differs dramatically by state with factors such as the amount of traffic, laws on tort liability, differing labor costs and deductibles contributing to the overall insurance premiums. However high car insurance is for the average adult, it is much higher for teenagers. Why is that? Consider this. In 1998, 14 percent of teenagers were involved in all the vehicular deaths that year.
In fact, those teens ages 16 and 17 are three times more likely to be in an accident than those ages 18 and 19. The reasons teenagers are more accident-prone can be blamed on their lack of driving experience and immaturity on the road. So a high premium should be expected. But there are ways to reduce the cost.
Being a Safe Driver Can Reduce the Cost of Car Insurance
As a parent, you need to decide how your teenager will be responsible for his own car insurance to some extent, either by paying on the premium or part of their car payment. A responsible teen who has some kind of contribution will probably be more likely to be a safe driver. Other ways to keep your teenager a safe driver is to buy them the right car. A sports car or one with a lot of horsepower will encourage the teen to speed or make other risky chances.
An SUV, because of it being prone to roll over, would probably not be a good choice for teens who aren't skilled in reacting fast. The best kind of car is one with a lot of safety devices such as airbags. Even though new cars have more safety features, older cars will save you on insurance. A car that has a low safety rate, or high rates of theft or vandalism will increase your insurance.
Also, make sure your teen takes a Drivers Education class (many of which are offered through your state's local DMV office). This class will only teach them the basics, but at least they will be more prepared to get out on the road.
Other Methods to Reduce Your Teen's Car Insurance
Other ways to reduce car insurance for your teen is to opt for a higher deductible (if you can afford it in the case of an accident). This will save you up to 20 percent on your premium each month. Also, consider putting your child as an additional driver on your own insurance (while this will raise your rate up to 100 percent, it will be much cheaper than getting them their own policy, at least until they're 21).
The most important though is to talk to your teenager about the vital importance of being a safe driver. Teach them responsibility in remaining accident and ticket free (which will keep rates low) and not putting themselves or other passengers at risk when they drive.
Things like talking on cell phones, driving while sleepy and definitely driving drunk are big subjects all parents should talk to their driving-age teens about before buying any kind of car insurance and letting that teen out on the road. The more safe teen drivers there are, the cheaper yours and everyone else's car insurance will be in the future.
