HELP! WHY IS IT SO EXPENSIVE FOR ME TO ADD MY TEEN TO MY AUTO POLICY?
When it comes to car insurance and teens, many young drivers and their parents have a lot of questions. It is a proven fact that teenagers account for more accidents than any other age group. Insurance companies base their rates on statistics, according to the Center for Disease Control and Prevention, teen drivers 16 – 19 years old are THREE TIMES more likely to crash than drivers 20 years old and older. Teens have more of a risky behavior that increase the odds that they will get into an accident, but around 25 years old the rates begin to drop because their accident risk decreases.
There are many things that come into play when getting your teen added to an insurance policy. Such as gender, age, location where the car is parked, driving record, the type of vehicle and even their grade point average in school can affect their rates.
Here are some tips for cheaper insurance:
· Choose a safe vehicle – the type of car you drive matters at any age. Having enhanced safety features, crash protection and larger body can help lower your rates. Try avoiding sports cars, as well as trucks and SUVs
· Getting on your parents policy- in most cases, being added to your parents policy can help you but it is still smart to get quotes for both because many factors can come into play.
· Opting for higher deductibles- the higher the deductible the lower the rate, but be careful not to set them too high because accidents do happen and you will want to be able to meet the deductible should something happen.
· Completing Driver’s Ed- taking an approved driving course can give you additional discounts and helps your teen gain a valuable foundation of safe driving habits.
· Maintaining good grades – good student discounts are often given to students who maintain at least a B average. Most companies require that the student be under 25 years old, enrolled in school full-time and has a grade point average of at least 3.0.
· Clean driving record – parents can promote safe driving by establishing rules for cell phones, passengers and car use.
Keeping these tips in mind can help your keep more money in your pocket when adding your teen to a policy. Be sure to shop around when looking for insurance for your teenager and also keep in mind that adding them to an existing policy can, in some cases, save your more money than having them on their own. They will get the benefits of discounts that would not normally be available to them such as being a homeowner, married, or even having the same insurance company for more than 1 year.