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Compared to other drivers, teenage drivers have the highest percentage of making an accident on the road, those making them the most vulnerable drivers.
Therefore, when dealing with their driving and auto insurance premium rate, parents must pay extra attention to them.
However, there are ways to control your average teen auto insurance rates.
1. It is suggested that parents should include their teenagers as part of their policy. Apart from less hassle, the reason for this is that the premium rates normally reflects mixed history of all drivers on the policy.
2. Teenagers who start to drive commonly are placed on the policy as a non-rated driver by most insurance companies to prevent your auto insurance rate goes up until they are fully licensed.
3. Instead of letting your teen drives an insured vehicle, you can designate an occasional driver rather than a principal driver to lower your rates.
4. Get a car insurance with a higher deductible as this leads to less amount of premium payment.
5. Liability insurance is recommended over collision and comprehensive coverages, especially if the cars are old. (Also read: Liability Insurance)
6. Car size, value and age affect the premium rates. For example, a red sport car with 2 doors generally attracts a far greater premium rate. (Also read: Top 9 Factors Determining Your Auto Insurance Rate)
7. Always install a lot of advanced safety features for your teenage car.
8. Do a frequent checking on your car insurance rates. Although the rate for young drivers are high, eventually it will drop after half to one year. Of course, this is achievable if the ‘no-accident’ record could be maintained.
9. It is always a good idea to get an umbrella policy. For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy covering your auto and home liability protection.
10. Make them accountable for whatever happens to their car. As a parent, the most appropriate thing for you to do is to inculcate the value of responsibility in them. They can even work part-time so that they can pay for one-half of their premium.
11. Talk to your insurance agent on how you can reduce auto insurance premiums for your teenage driver. Insurance policies vary from state to state, so find out which laws are applicable in your state and those that pertain to teenage auto insurance. Most auto insurance companies do not offer auto insurance discounts for young drivers until they turn 25.
Get your insurance quote and policy. Read them carefully and do them same for the policies of the insurance company before you finally signing the policy.
Also read: 6 Tips to Reduce Your Car Insurance Premium