Keeping Car Insurance Rates Down For Teens
The teenager shopping for car insurance is at a decided disadvantage. Car
insurance rates are based on age and driving experience as well as driving
record. The best way for teenage drivers to work their way into better rates
is stay on their parents policy in order to gain driving experience and a
driving record. There is a good chance that after three years and a clean
driving record that a preferred policy from the parent’s insurance company
can then be issued on the teen drivers that want to have their own car and
pay for their own insurance. There are numerous discounts for the young driver
today. Drivers training education is the most common discount. The drivers
training course normally consist of 30 hours of driving with an authorized
instructor along with 6 hours of classroom work. Some companies give discounts
for good students that carry a 3.0 grade point average in high school or
college. There is also a resident student discount available by some insurance
companies. The student has to live over 100 miles away from home to receive
this discount.
Age Rating Tiers – Most insurance companies have age rating tiers
on young drivers. The ages from 16 to 21 is one tier and the rates are the
highest in this time period. The next age tier begins at age 21 and ends
at age 25. The rates drop significantly at age 21 and again at age 25.
Vehicles Make a Difference – The younger the driver the higher
the rate. The rates are very high for young drivers on newer vehicles that
require collision and comprehensive coverage. Older vehicles that only require
liability coverage as a minimum state requirement is one way to cut costs
for the teen driver. Utility vehicles like pick-up trucks receive a small
discount and the teen driver can take advantage of that discount also. The
teen driver needs to stay away from high performance vehicles and sports
cars because the rates will be very high and these cars may not qualify for
standard car insurance.
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