December 16, 2011

Effective Ways For Teens To Lower Their Auto Insurance Costs

Teen drivers and their parents can benefit from lowering the cost of car insurance. Auto insurance costs are very high for teenagers because they are the highest risk category. Teenagers also do not have a lot of experience behind the wheel and that leads insurance companies to charge more because they do not know how the teenager will develop as a driver. Older drivers have the benefit of having a driving record to influence the cost of insurance rates. Safe drivers get lower prices than teenagers and people with accidents and tickets on their driving record. There are ways for teenagers and their parents to lower the cost of car insurance.

One very effective way to reduce auto insurance costs for teens is to increase the deductible on the policy. Having a high deductible demonstrates the willingness to take personal responsibility for a collision and takes some of the financial burden off of the insurance company. The insurance companies are willing to offer lower rates to teen drivers and their families if they are willing to pay more after an accident.

Another effective way to reduce auto insurance costs is to drop comprehensive coverage. This should only be done on older cars that are not worth very much money. Cars that are older and worth little more than the deductible are not worth having comprehensive coverage because the driver will end up paying more to fix the car than it is worth.

One of the most popular ways for teen drivers to cut costs is by getting good grades. Students that have good grades are given a discount on their car insurance policy. Most auto insurance companies will give a discount to high school students that maintain a B average in school. College students are eligible for the same discount as long as they are in school full time. Full time college students typically have to take at least 12 credit hours per semester to remain eligible.

Going away to college and leaving the car at home is a great way to reduce prices. If the teenager or young adult leaves for school and does not take the car can usually get a large discount on coverage for the car back home. Parents that provide car insurance for their teenagers can save some money on the policy by linking the policies with other car policies and their homeowners insurance. Many insurance companies also offer discounts to young drivers if they watch educational films with the insurance agent. These videos are designed to show young drivers the dangers of being unsafe behind the wheel. Teen drivers can cut auto insurance costs by taking advantage of any discount offered by insurance companies.