How to Find Affordable Teen Auto Insurance

Affordable Young Driver Insurance - Lenders and Criteria

Nov 2, 2009 Fleur Hupston

Young drivers are seen as a risk by insurance lenders. How to minimize the risks and where to find affordable teen car insurance.

It is no secret that car insurance lenders see teenagers as a high risk. This is, of course, because young drivers lack experience on the road, often misjudge situations and many times feel they are invincible.

Affordable Teen Auto Insurance

Look for auto insurance with a greater deductible (excess). The premium payment is usually less for auto insurance that covers a higher deductible. When it comes to teenagers, getting rates from a variety of insurers is important because it helps locate those who offer a cheaper rate to teens. Compare online to get the best deal.

Consider adding the teenager to a parent or guardian's existing policy. Many times this will be a lot more cost effective than if a youth were to purchase a policy of his own. Many companies will offer a discount to teenagers who complete a recognized defensive driving course. This serves the dual purpose of saving money on premiums and also teaching the young driver valuable driving lessons which will make them safer drivers.

Many insurers will reward those who maintain a "B" or higher grade point average with a lower rate. This is given because it shows the insurers that these students are more responsible versus those who do not consider their grades to be as important. Proof may need to be submitted to the insuring company.

Young Drivers - Minimizing the Risk

While parents don't want to nag their kids about driving all the time, it does need to get across to kids that driving is a privilege and a responsibility. Kids will minimize risks and get better insurance deals by:

Observing and obeying traffic laws, driving sensibly and having a clean driving record. This needs to be emphasized over and over to a teenage driver. A clean driving record will mean lower premium payments.
The young driver or his/her parents should buy the safest car on the road, with advanced safety features. Avoid sports cars because it is easier to speed in these, sometimes without even being aware of it.
Seat belts must be worn at all times by the driver and passengers.
Impress on the young driver the need to be responsible and not to be distracted by phone calls, talking, fooling around, looking around or focusing on friends in the back seat, eating, drinking or anything that can take attention away from driving.
Follow license restrictions. Teenage drivers need to stick to the restrictions and guidelines that their licenses specify.
Teens should avoid night driving if possible, especially in the first six months of getting their license.
Consider getting a stand-alone policy. With this kind of policy, the teenager will be responsible for his or her own insurance, possibly making him or her think twice before driving recklessly.

Within a few short years and by keeping a clean record, the young driver can look forward to a good driver discount of about 20%.

More Articles on Insurance and Kids that may Interest the Reader:

Clever Ways to Save Money on Insurance: This article examines ways to make car, household and life insurance more affordable.

Best Credit Card Options for Teenage Kids: Money management tips for kids and which cards are best suited to this age group.

Ever wondered if kids should take out insurance for their gap year travels? The article Gap Year Travel Insurance takes a look at travel insurance options for this category.

The copyright of the article How to Find Affordable Teen Auto Insurance in Insurance is owned by Fleur Hupston. Permission to republish How to Find Affordable Teen Auto Insurance in print or online must be granted by the author in writing.

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