Generally speaking, car insurance for young people is more costly than the car insurance for older people. Simply because teens are younger, without experience and still doing their job to learn about driving. However, there are techniques how young drivers can obtain cheaper car insurance.
What’s the reason behind having higher rates for teens?
Based on statistics, teen drivers are more prone to car accidents, do traffic violations, get traffic tickets—as opposed to the older drivers. Most auto insurance providers consider these things when identifying the risks of insuring teen drivers.
Do male teens pay more?
The varying rates on car insurance are based primarily on statistics. Compared to female teens, male teens pay more for their car insurance premium. For instance, male teens who are not more than 25 years old are likely to do the following:
- rack up traffic violation and drive under the influence (DUI)
- ignore wearing seatbelts
- prefer to drive flashier and speedier cars
- drive with more people onboard
- drive more frequently than females
Don’t forget that car insurance providers take into account the risk factors when identifying the premium. That is why teen male drivers, who want to take advantage of more savings including maintaining their driving records clean, can also obtain low rates.
Many insurance firms vary their rating factors by state and individual insurance companies; however, the normal rating factors will include the following:
- Your age and gender. Younger drivers will generally pay more and, statistically, female drivers have better rates on car insurance.
- Your marital status. Often, married drivers can have lower rates.
- Your location. In addition to where you park, drivers from rural areas tend to have lower rates compared to those living in the city who park their car on the streets.
- Your driving record. This one plays an important role in identifying discounts and lower rates.
What do car insurance companies normally consider when evaluating your driving record?
- driving record points and traffic violations
- license status as well as the previous or latest suspension and revocation
- car accidents
- your car’s manufacturing date and model
- how frequent you drive your car
- your job
- your history in car insurance
Tips in receiving low rates for teens’ car insurance
- Picking a safe car. Compared to flashier counterparts, car insurance providers will offer cheaper rates when your car is modest and safer to drive.
- Getting the insurance policy of your parents. Technically, there’s no need to own any car insurance policy for the teens, but you can get on your parents policy. Although, there’s a bit increase in its rate, price will still be cheaper compared to paying for two policies. It’s still better to make a price comparison on both of them.
- Deciding for higher deductibles. This is your parent’s final decision—if you are on their policy; however, paying higher deductibles will always lower the regular premiums. Choose deductibles that are affordable for you because accidents can happen out of the blue.
- Accomplishing driver’s education. Car insurance providers are happy to see certificates on driver education completion. It does not only mean you’ve known the road rules in your state, but this training is your most valuable accomplishment before driving. Consider taking this short-term course to reduce the rates on your car insurance.
- Having good grades. Your car insurance company can offer financial relief if you maintain good grades in school: A to B average range. Most car insurance companies offer significant discounts to students who get high grades.
- Maintaining your driving record clean. For teens and adults alike, clean driving records determine their appropriate insurance rate. You can keep your rates low as long as you drive carefully and keep your driving record clean.
- Leaving your car behind when you go to college. You will be offered with discounts if you leave your car behind when going to college. Also, you parents can take you off their policy until you start driving again.
Take note that the above are only options to be able to save money. It’s recommended to always consult your car insurance agent regarding other ways to save more on car insurance coverage.
To get additional information about how teen drivers can pay less for car insurance, please contact us at DMG Insurance and Financial Services, Inc. (http://www.dmginsurance.com) at 543 N State Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071, Fax 561 422 7072.