February 25, 2012

Where To Find The Best Auto Insurance Coverage For A Teen

Teen drivers often have trouble finding inexpensive auto insurance coverage. Insurance providers typically give cheap car insurance policies to older drivers with safe vehicles, and teen drivers typically pay more for their auto insurance coverage than these more experienced drivers. This is entirely due to the actuarial statistics that insurance companies use to set rates. As teen drivers are more likely to cause accidents, they're more likely to make claims. Male teenage drivers are also much more likely to make a claim than female drivers, so they pay the most of any age and gender group. However, teenagers can cut the cost of their insurance premiums by taking a few simple steps and by knowing where to look.

All insurance companies offer the same types of coverage, but rates are very different from one insurer to the next. One way to decrease rates is to look into insurance discounts. Insurance companies usually offer discounts to teen drivers who keep good grades, as teens with high GPAs tend to have fewer accidents. Teen drivers can also get discounts for taking free or low-cost driving courses (in addition to the courses that they need to take to earn a license). Discounts ultimately vary from one provider to the next, so the best way to find out about them is to contact an insurance agent and ask. Insurance discounts also vary in legality from one state to the next, so drivers in some states might have fewer available discounts.

Before buying insurance, teens should consider their vehicle choices. Teens can benefit from safe, low-risk vehicles. While flashy cars are certainly fun for younger drivers, vehicles with high safety ratings will allow for lower PIP (Personal Injury Protection) and liability premiums. Minivans, SUVs and eco-friendly cars are usually less expensive across the board, with lower-than-average comprehensive and collision insurance costs. Once again, insurance company actuarial statistics are to blame. Drivers usually drive these types of vehicles responsibly, resulting in fewer claims for the insurance provider. Teen drivers should evaluate vehicles carefully before buying. Online insurance comparison tools are a great resource, as they make it easy to see what insurance coverage will cost before making a purchase. These tools make it easy to find reliable coverage.

Another advantage of insurance comparison tools is their ease-of-use and, in order to get cheap car insurance coverage, teen drivers should use these tools to check that they are getting the lowest possible premiums. Insurance companies use slightly different algorithms when setting rates, so one insurer might offer younger drivers much lower premiums than another insurer. Comparing rates online is the fastest way to find low premiums for a fairly protective policy.