Car insurance rates for teenagers reflect the fact that they are the highest risk pool of drivers. Insurance companies base their policies on risk so even the most responsible teen is lumped into this statistical group.
This is true for two main reasons. First of all, they are young. Youth equals immaturity in many ways. Secondly, the have just received their licenses and have not built up any experience on the road.
Statistics show that the insurance companies are right to charge more for young drivers. There are more accidents by people in the 16 to 20 age group than in any other group. Thus, the higher premiums.
But, there are ways to reduce the cost of car insurance rates for teenagers. The primary way is to show that the student has high grades in school. Students with a 3.0 grade point average are seen as more responsible and therefore a better risk for the insurer.
If a teen drives an older car or one that is completely paid off, they will also get a break on their insurance policy. This is because if the car is totaled, the insurance company has less to pay out.
The final way for parents to reduce their rates is to ask their insurance agent to increase the deductible. This reduces the costs of the policy because the insurance company has less to pay off in case of damage. Parents should tell their teen that if they cause any damage to the car, the money comes out of their own pockets.
While car insurance rates for the under 20 set are always going to be higher than those for older, more experienced drivers, there are ways to reduce the costs. Most of these involve having the teenager be responsible in his or her driving and the other areas of their lives.
As the young person establishes a good driving record and ages out of this high risk group, they will find that their insurance premiums drop down to a normal level. High insurance rates for teenagers are not a lifelong condition!
If you are looking for more Car Insurance Rates for Teenagers information, go to http://autoliabilityinsurance.org/
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