July 31, 2010

Why Insurance Rates Go Up For Teens

Finding auto insurance quotes for teen drivers can seem intimidating. Traditionally an auto insurance quote for a teen driver can be quite high since teens can be seen as a somewhat risky proposition for an insurance company. Sometimes it seems more reasonable for a parent to insure a teen under their own auto policy; but on the other hand, sometimes insuring a teen can be less expensive if the teen is insured independently of his or her parents. This article can tell you some of the reasons why insurance rates go up for teens.

Many auto insurance quotes will go up for teens if their grades begin to drop. While it is true that auto insurance quotes tend to go down for teenagers who excel at school, the opposite is also true. 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.

Teenagers who have not taken a driver's education class also qualify for higher rates. 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.

Teens who have not taken a no-alcohol pledge may also see their auto insurance quotes rise. 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. That convertible may look cool, but it may cost you more money in insurance. Be sure to shop around for an auto insurance quote to find the best price.