Car insurance rates for teenagers are especially high because young people who have just received their driver’s licenses are the highest risk group.
This is true for two main reasons. First of all, they are young. Youth equals immaturity in many ways. Secondly, the have just received their licenses and have not built up any experience on the road.
Statistics show that the insurance companies are right to charge more for young drivers. There are more accidents by people in the 16 to 20 age group than in any other group. Thus, the higher premiums.
Car insurance rates for teenagers can be lowered in three ways. The first and most important way is to get good grades. Students with a “B” average (3.0 on a 4.0 scale) get a break from most insurance companies. These students are seen as more responsible in the primary activity in their life and are thus going to be responsible in a secondary area, namely driving.
If a teen drives an older car or one that is completely paid off, they will also get a break on their insurance policy. This is because if the car is totaled, the insurance company has less to pay out.
Finally, parents can ask their insurance agent to increase the deductable in order to reduce the cost of the policy. They can then tell their child that in order to have the privilege of driving, they have to drive safely or pay off the difference between the damage and the insurance payout.
While car insurance rates for the under 20 set are always going to be higher than those for older, more experienced drivers, there are ways to reduce the costs. Most of these involve having the teenager be responsible in his or her driving and the other areas of their lives.
As the young person establishes a good driving record and ages out of this high risk group, they will find that their insurance premiums drop down to a normal level. High insurance rates for teenagers are not a lifelong condition!
If you are looking for more Car Insurance Rates for Teenagers information, go to http://autoliabilityinsurance.org/
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