Buying Auto Insurance for Teens
Buying Auto Insurance for Teens
Your teenager has just received their driver’s license and with their hand stretched out for the keys, they are asking to use your car. Before your parental love causes you to give in, think about this reality: your vehicle needs auto insurance for teens.
Why should teenagers be insured?
If you wonder why your teenager should be insured, here are some strong answers to your questions:
According the statistics from the Insurance Institute for Highway Safety (IIHS), teens as young as 16 years old are nearly six times more likely to get into accidents versus driver ages 30-59.
This accounts for high premiums for this age group. Nevertheless, if you don’t have auto insurance for teens and your teenager has an accident, then you’re creating a financial hardship for yourself. This is because you’ll be responsible for paying the auto damages of the other driver, and worse, you could face a lawsuit. Even traffic violations caused by your teen’s reckless or drunk driving can hinder you.
What to consider when insuring teen drivers
Now that you know why teenage drivers should be insured, you must learn what to consider when purchasing auto insurance for your young new driver.
First, you must take into consideration that adding a teen driver to your policy will raise your insurance rates. If your teen is a female, expect as much as a 50% increase; males hike insurance rates up to 100%. Insurance companies are not supposed to charge by gender; however, statistics show that a teen’s gender can play a role in determining auto insurance rates.
Given these rate hikes, you may want to shop around for the lowest auto insurance rates. Enlist the services of an auto insurance specialist; for they can direct you towards the best car insurance rates for you and your teen driver.
If you plan to buy a car for your teenage driver, consider getting him or her a cheaper model car. The reason for this is because auto insurance premiums are based on the type of vehicle driven. So if you’re looking to save money, think twice before purchasing convertibles, SUVs, and performance vehicles. These are pricey to insure – more so than some cars.
If you already encourage your teen to get good grades, here’s another reason to do so: they become eligible for a “good student discount.” This can help lower their insurance rates from 5-10%. Taking a driver’s education course can also result in discounted insurance rates by as much as 15%.
Last, you might want to consider a having a higher deductible. Remember, the higher your deductible is, the lower your premium will be. Therefore, having a deductible from $500 to $1,000 can bring you a saving from 10-20% on your premium.
When should you purchase auto insurance for teens?
The minute your teenager gets a driver’s license – even if it’s just a driver’s permit – you should buy auto insurance for them. Purchase auto insurance online and your teen can be up and running the streets in no time. The lowest auto insurance rates are sure to be found online.
Nearly 4 million teenagers drive in North America. Your teenager may be one of these drivers. If they are, then give them the greatest gift besides the keys to the car. Purchase auto insurance online for their safety. It’s a wonderful way to cover them with your love.