How Can a Teen Car Owner Get the Best Auto Insurance Rates

The question of how a team car owner can get the best auto insurance rates is a very interesting one. The young driver who owns his or her own vehicle will likely find the cost of buying a primary policy is very expensive. Not many people can afford to pay up to $1,000 a month for coverage, but there are ways to keep insurance costs down for newly-licensed drivers.

Auto Insurance Rates for Teen Drivers

Why are auto insurance rates for teens and young adults so high? Insurance companies decide how much to charge their policyholders based on the level of risk that each one presents. Insurance companies are aware that teens and young adults are more likely to be involved in collisions than older, more experienced drivers. For this reason, rates for drivers under the age of 25 are high. Young male drivers are charged the highest rates of all, since they are statistically more likely be involved in collisions than female drivers.

Add a Teen Driver to an Existing Policy

In a situation where the teen will be using a car owned by another member of the household, getting coverage is a simple matter of adding him or her to an existing policy as an occasional driver. Depending on the insurance company, the team may need to be added when he or she obtains a learner’s permit, but in many cases the new driver would be added to the policy after passing the driver’s license test.

A number of insurance companies offer discounts to teens and young adults who have successfully completed an approved drivers education program. Young people learn the rules of the road and how to operate a vehicle safely, which makes them a better risk for insurance purposes. As a result, the company can offer lower rates for coverage.

Teen Car Owner and Auto Insurance

If a teen also owns his or her own vehicle, a good strategy for keeping costs down is to insure all vehicles in the household with the same company. Many insurance providers offer discounts for ensuring more than one vehicle on the same policy. Buying car and homeowners insurance from the same company is another effective strategy for keeping coverage costs down.

Buying a new car, whether the owner is a teen or a more experienced driver, is an exciting time. To make sure that you are getting the best possible pricing for the coverage you need, make a point of getting quotes from several auto insurance providers before making a decision about where to buy your policy.

Parents of teen drivers should review their current coverage levels to determine whether it meets their needs and then ask for quotes which include the teen driver and his or her vehicle when shopping for auto insurance. The current auto insurance company may not have the best rates, and making a switch to a new one can save money on coverage costs.