August 2, 2010

Why Insurance Rates Drop For Teens

Finding auto insurance quotes for teen drivers can seem intimidating. Traditionally teens are considered by insurance companies to be a risky investment, and therefore finding an affordable auto insurance quote for a teen can be difficult. The good news is that there are many things parents and teens can do to lower their auto insurance quote. There are many reasons why insurance rates drop for teens, including discount programs. Even the type of car a teen is driving can influence his or her insurance rate.

Many auto insurance quotes will drop for teens of they get good grades. This is an example of a discount auto insurance companies make available for teens who excel in school. While there are plenty of reasons why a teenager should make good grades, the truth is that auto insurance companies offer lower insurance rates to students who consistently earn high grades because insurance companies see good grades as an indicator of a more conscientious and responsible teenager-and therefore a teenager less prone to accidents.

Many insurance companies also offer an auto insurance quote discount for teenagers who take or who have taken a driver's education class. So enrolling your teen in a class will not only help them be a more responsible driver, but may also lower their insurance rates. Driver education classes tend to make for better informed, and also safer drivers, and insurance companies are looking for as much evidence as possible that your teen is a knowledgeable and safe driver. Drivers across the board who are aware of the rules of the road and the follow them earn lower auto insurance quotes.

Having your teen take a no-alcohol pledge may also lower their insurance premiums and is one reason why auto insurance rates drop for teens. A no-alcohol pledge demonstrates to the insurance company that a teen driver is serious about being safe on the road-and therefore lowering the risk that they will be in an accident. Lowering risk means that in the long run the teenager is less likely to cost the insurance company much money, something the insurance company takes a vital interest in.

You may want to see what kind of a difference assigning different family cars can make. Insurance companies are more likely to lower rates for teenagers who are driving cars that are considered safer and more reliable. This is because these cars are less likely to sustain a lot of damage in an auto accident, and are therefore less expensive for a company to insure.

There are many reasons why insurance rates can drop for teens. These tips will help you find a good rate for your own teen.