Shopping for Young Persons Car Insurance? Sell Your Teenager!
Not literally of course; but the better picture you present to your insurance company the lower your rates will be.
As you have probably figured out by now, premiums for young persons car insurance are quite high. The reason for these figures is because new drivers are seen as very high risk for insurance companies, and they are much more likely to have insurance claims than drivers with more experience. Driving history is the number one issue that causes drastic price differences between older drivers and younger drivers. Add to the fact that the teen is a male, and you have a very expensive combination. That being said, there are some things that can be done to help keep insurance premiums to a minimum.
The first thing that can be considered is to list your teen on your current insurance policy.
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This helps to lower the rate because the insurance company is using some of your good standing status to hedge their bet against your new driver. This makes the premium, while still somewhat high, lower than having a solo policy that the teen is responsible for on his or her own. Of course it is important to understand that this will not be the case in all situations. If your driving record is less than stellar, or if you simply cannot or do not want to assume the risk yourself, you may need to purchase a separate young persons car insurance policy. Spend some time researching this option before making your decision to find out if this is the best way to proceed.
After you have decided which type of policy you will be purchasing (an addition to your current plan or a completely new plan), you will need to begin selling your teen to the insurance company. Again, not literally, but it is important to spend some time thinking about how the insurance company will view your new driver. If you can paint a rosy picture that is sure to impress, you stand a much better chance of obtaining lower rates.
Some factors that can impact the cost of a young persons car insurance premium include things that have to do with responsibility. For example, if your teen holds a part time job, in addition to attending classes and earning good grades, this can qualify you for a discount. If your teen has completed a driver training program, or a specialized driving course, insurance companies will view this quite favorably as it illustrates the teen has more than adequate skills behind the wheel and has taken the initiative to become a safer driver. This can lead to further savings.
Furthermore, if your teen does not venture far from home to commute to work or school, you can use this information to apply for discounts to the young persons car insurance as well. The type of car your new driver has can also be a factor for a reduction in the total premium cost. After all, think how an insurance company will feel if your teen is driving a shiny new Mustang convertible, as opposed to a five year old Toyota Corolla.
Finally, another issue that can impact the overall cost of a young persons car insurance is the security of the actual car the teen drives. If the car is kept in a locked garage at night, and/or has an alarm or engine immobilizer or is equipped with Lojack, you could save hundreds of dollars each year.
On top of all of these helpful tips, it is just as important, if not more important, to talk to your new driver to make sure he or she is responsible behind the wheel and driving safely. Any type of traffic violation or accident can undo all of the above mentioned discounts and raise the premium cost substantially.