Choosing the Best Auto Insurance for Teenagers

Choosing the best auto insurance for teenagers may take you a little time to research, especially if you want to save money. In addition to the extra annual savings, you may also want to start teaching your teen the value of good coverage selections early.

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Many people today think that teens will automatically pay high rates for car insurance. As a result, they do not spend the required time looking around for the best deals.

It is certainly a fact that younger drivers pay more than many older drivers because of their lack of experience.

However, with the number of rival auto insurance companies around, it is possible for your teen to acquire top-notch coverage in an acceptable price range. This is why before you make any costly errors you should consider multiple options to arrive at wise conclusions.

The bottom line is simple, aside from their short driving record teens need to go through the exact same process as any other age group when they need auto insurance. In actuality, they may even receive better rates because they have not made as many mistakes as some.

Add Teens as Additional Drivers to Existing Policy

If you have a new driver between the ages of 16-18, they may not have their own vehicle. This is the most simple and direct way to make sure they have good coverage.

With a teen driver, the levels of incidents on the roads rise tremendously. Statistics from Census.gov show that 26% of teen drivers have their first accident before they reach 21. Of this number, 25% are male teen drivers.

In the past, this was only because of less experience and fewer skills. Unfortunately, technology plays a major role now in the form of distracted driving. The Center for Disease Control reported that drivers under 20 have higher risks.  Distracted teen drivers account for more than 11% of the fatal accidents in the United States involving teenagers each year.

Non-fatal accidents still require a certain amount of protection as well. The victim or victims may need medical care and without a doubt, their car needs repairs.

Adding a teenager to an existing policy guarantees adequate coverage levels because the parent monitors the selections.

In Texas and Louisiana, most car insurance companies automatically include the licensed driver, whether they plan to use their parents’ car or not. If you have a license and live in the same residence as a current customer, it is their policy. They feel this strongly about keeping drivers insured.

Consider Putting Off Buying Your Teen a Car

If you consider putting off buying your teen a car for the first year after they receive their driver’s license, you benefit in two ways. First, you can just make one call or go online with your current car insurance company to add your new driver. This process can take as little as five minutes.

The other, more important reason is your teenager will have a full 12 months to get used to driving on heavily populated roads. This is a crucial time for most young drivers.

During the first year, they really get to understand the privilege of driving. If they have to use your vehicle each time they want to go out, they will more than likely respect your car and others on the road. In addition to keeping everyone safer, they also start building a spotless driving record.

This also helps them refrain from acquiring bad habits, which many pick up rather quickly. Something about new drivers fills them with recklessness. They take more chances. However, driving mom and dad’s car reminds them to pay attention and follow the law.

Shop Around for Car Insurance Companies that Monitor Driving Habits

Virtually every car insurance company provides a new service that applies discounts for safe driving. Some of the top companies include Progressive, Allstate, State Farm, and USAA. They monitor the driver’s progress for approximately six months. After determining their risk level, they remove the device and issue a discount.

This is an excellent incentive for young drivers who may perform better when they know someone watches their movements. In addition, as a parent you can continue the process by purchasing a simple mechanism that serves the same purpose.

A top manufacturing company, Davis sells car-monitoring chips for less than $100. They resemble a USB adaptor and let you record as many as 300 hours of driving. After your car insurance company stops watching, you can start your own monitoring sessions until you have complete trust in your teen.

The gadget is so small they may never even notice it is there. The best part is you will always know where your teen travels and their acceleration and braking habits. This is essential to allow you to track their progress as they gain more driving experience.

Look for Unique Discounts with Local Agencies

Everyone has some level of knowledge about the most common discounts for young drivers, the good student rewards. However, one of the best reasons to use a local auto insurance agency is they are in your neighborhood and have access to area information.

They take the time to build a trusting relationship with you and your family. Most live in the same city and have children that go to school with yours.

Many of the larger, direct to customer car insurance companies try to stay aware, but fall short by a mile. They cannot possibly stay in tuned with everything happening in all American states and cities.

Larger national companies cannot provide the personal attention that a local agent can.

A local auto insurance agent has the up-to-date discounts that apply to specific places where they work. They may ask questions about your teen’s hobbies and high school activities. This could qualify you for discounts no one else even thought about applying.

For instance, if your son or daughter plays high school sports like football, soccer, or basketball, you probably belong to a booster team. This could mean hundreds of dollars in discounts if your auto insurance agent recognizes your affiliation. The same is true for cheerleading and even academic clubs, like the National Honor Society.

Find Providers Who Reward Teens

The National Safety Council provides defensive driving courses for all states, which your teen can use to keep car insurance rates low. You should locate those companies that recognize this proactive decision to become a safer driver.

For just over $40, your teen can sign up online and complete the course. It is self-paced, which means they do not need to speed through quickly. They can take their time to make sure they really learn the material.

This is not a simple, questions and answers course. During their study, your teen will learn how to navigate unexpected obstacles, prepare for emergencies, and gain confidence. The modules consist of interactive exercises, audio and video guides as well as real-life simulations. The NSC provides your teen with a certificate to give to the insurance provider.

An auto insurance company that accepts this certificate shows a mutual interest in safety. It should appeal to their risk assessment mentality by realizing that your teen is serious about driving. They appear less irresponsible.

This is important because you want a carrier that is dedicated to more than just taking your monthly premium. In addition, these kinds of car insurance providers are more likely to review your teens driving capabilities consistently. This helps to lower their rates over the course of a few years.

Make Sure Your Teen Keeps Their Record Clean

In the automobile insurance industry, they categorize their drivers by their level of risk.

Unfortunately, new and young drivers start out in the high-risk class. This group is usually for people who have little experience or those who abuse their driving opportunity.

Since your teenager probably does not have any violations or citations, they remain in this class for a few years until they gain enough experience. This only happens with time. However, after a few years, usually three, your teen should no longer remain with the high-risk group. This is where a review of their driving record enters the picture.

If you live in a state where the minimum age for a driver’s license is 16 and your teen has an impeccable driving history, you should start seeing small decreases in the annual premium after two years. If after the third year your car insurance company still charges the same rates, you need to verify their record.

There are two main reasons a car insurance provider fails to reduce rates, the first is because they never checked their driving record.

The second reason is the information on their driving record is inaccurate. A DMV employee can make many mistakes during the course of a year. Your teen could lose valuable savings because of a tiny error. There could be two people with the same first and last name, living in the same town. Without social security verification, it is easy to see how a mix up occurs.

To be certain, just contact your local DMV in person or online and apply for a driving abstract. Once you have the documents in your possession, you can contact your car insurance company and start asking questions.

Having a new teenage driver around comes with many mixed emotions.

As a parent, your primary focus is keeping your child safe and the idea of driving on certain streets and highways conjures up unsettling thoughts. The good news is that you can find a way to ensure a certain level of security that will protect them once they drive away. In addition, you should also try talking to them about safe driving habits every once in a while.

You do not always have to feel dread and anxiety every time they reach for the car keys. Use open communication and review all of your options, then make the decision together. Soon after, you and your teen will both breathe a sigh of relief.

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