One of the scariest things parents have to face is when their teenager begins to drive. Another scary thing is the price of teenage car insurance. Teenagers are in the highest risk category. With a little research and comparison shopping, it doesn’t have to send you to the poorhouse. These are ways to make sure you get the best coverage, at the best price.
Teenage Car Insurace – Insuring Your Teenage Driver
You don’t have to insure your teenager when he gets his learner’s permit. During this time he is not allowed to drive without a licensed driver that is insured. This insurance covers him during his learning period. However, you should inform your insurance company that a new driver will be using your car.
When your teen becomes licensed to drive alone, you will have to add him to your policy. Most companies like to have a new driver covered under the owner’s policy for a few years before issuing car insurance to the teen himself. If your teen insists on getting his own car, you should still think about adding the car and your teen to your policy. This will save a lot of money because you will get a second car discount. Besides, getting car insurance under 25 years of age can be difficult without a parent’s help.
Your insurance company will give you a discount if your teen successfully completes a driver training course. These courses are expensive, but in the long run the savings more than make up for the cost. This also gives your teen a good foundation for when he applies for his own insurance. Many companies also take into consideration your teen’s personality. If he gets good grades and holds a steady part time job, this shows responsibility. Insurance companies hope this responsibility will reflect positively in their driving habits, as well.
In general girls are considered a lower risk than boys. This will also impact how much your premiums increase.
Teenage Car Insurance – Car Insurance for Teenagers
Your teenager has been waiting sixteen years to finally get behind the wheel. Now the time has finally arrived. He has worked hard for several summers and saved enough for his own car. What type of car should he buy? Of course, since he is paying the car and the insurance himself, he might not ask your opinion. But, if you are the one dishing out the dough, you have the final say.
The vehicle greatly impacts the cost of insurance. The age, style and power levels all play an important role.
Sports cars, no matter how old you are, will always carry higher premiums because they are geared for power. The more power, the higher the risk of causing an accident. You might think your teen is a safe driver and always uses common sense, but insurance companies will not take your word for it and increase the teenage car insurance premium.
There is something about the feel of all those ponies revving under the hood that brings out the race car driver in all of us. The insurance companies know this better than anyone. They have seen how much damage a powerful car can cause. The more powerful the car, the more teenage car insurance will cost. Also, sports cars cost more to repair. The insurance company will have to pay out a lot of money if something happens to the car.
An older car is cheaper to repair. The value of the car is lower than a new car, therefore the cost to replace it is less. In many cases old cars, unless they are refurbished antiques, will be called a write off easier than a newer car. A write off is when the cost to repair the damage is greater than the book value of the car.
Far too many people have had the bad experience of owing more money on their car than the book value. When the car is written off, they end up paying for a car they no longer have. The insurance only pays book value. You are left to pay the rest of the loan yourself. An older car is usually paid in full.
Another reason older cars cost less to insure is because most of them are built better. They contain heavier metal and a stronger frame. This minimizes damage and prevents serious injury. Since big heavy cars are difficult to maneuver, teens are less likely to pull any crazy stunts to show off to their friends.
Teenage Car Insurance – The Age Factor
Some people still do not believe age is a factor in car insurance premiums. Maybe these people have not had too much experience buying car insurance or they just never paid attention, but the truth is, age is a huge factor. Other social situations are huge factors as well. For example, a man under the age of 25 that is married will pay less than a man under the age 25 that is not married.
In most cases. Of course, the man’s driving record will be considered. But, assuming they each have a clean driving record, have both been driving for the same number of years and both live in the same city, the married man will pay lower premium because the insurance company looks at him as a responsible adult, while the single man is still considered a reckless youth.
After the age of 25, premiums will lower again. Teenage car insurance is expensive, but it can be affordable if you keep these factors in mind.