| Auto Insurance >> Auto Insurance Rates - For Teenagers Auto Insurance Rates - For Teenagers |
Teenagers are very enthusiastic to drive the car. Now, this is the time for you to report your insurance company. Teenagers are not safe drivers, therefore their insurance rates are more likely to be high. If your teen is a girl your insurance rate will be raised by 50% and if your teen is a boy it will be raised to 100%. One thing you need to do is to increase the liability limits or you need to buy an umbrella liability policy for additional protection.
[Liability insurance: pays out for the injuries and damage caused to others in an accident.]
[Umbrella liability: It covers for the losses caused above the limit of policies such as homeowners & auto insurance. Mostly terms of coverage are broader in this.]
How can you minimize the high cost on insurance?
a. Insure your child to your own policy:
Firstly, it would be better if you add your son/daughter to your own policy, instead of buying the new for them. Secondly, if your child is driving his own car then you can insure him/her to your company so that you could be eligible for multi-policy discount.
b. Let your agent know that your child is going away to school:
When your child is at school, they are assumed to be away from the car. You will get the discount even for the hours your child is not around to drive the car.
c. Teens should be encouraged for the safe driving:
There are a few companies who gives good discounts for the one who takes recognized driving courses and for getting at least “B” Grade average at school.
d. Shop around:
It is good to shop around to the different companies to know which company is providing the good discounts for teens.
e. Choose a safe car:
Buy a car which is safe and is installed with all safety instruments(seatbelts, car alarm, air bag etc.). It should also offer protection when accidents/crashes happen. Avoid the small cars or the car with a high pick up. These all features will likely to reduce the insurance rate.
f. Talk to your child about safety:
Safe driving will not only saves your money but also keep your child healthy and alive. As your child grow older, insurance price go lower; only if he/she posses a clean driving record.
g. Talk to your teen about the hazards of combining driving with alcohol, lack of sleep and distractions:
Most of the accidents occur due to the teens reckless/rash driving; using cell phone while driving, playing radio with a high volume or talking to the friends at the back seat. Teach them even how to behave when they are the passengers' in their friend's car. Distraction is one of the causes of accidents.
h. Be a role model:
Be a good example to your teenager because they learn by example. If your driving is rash and rough, he/she may copy the same. So, do wear seatbelt while driving and do not drink and drive.