Car Insurance for Teenagers
It may as well be expected that car insurance for teenagers is going to carry a fairly high premium. However, there are a few ways in which to keep the premium lower.
The first thing to do is find a vehicle that is cheaper on insurance. An older model pickup is actually just about the cheapest vehicle for a teenager. However if the teenager is not going to go for a pickup, go for an older model vehicle. If you can possible purchase a vehicle with cash so there is no lien holder, you can put just the minimum coverage and not have to carry comprehensive and collision. This can actually save up to $300 to $400 per six months.
Auto insurance for teenagers can be slightly difficult to find also. There are very few companies which will write a policy for a teenager if the company does not also carry the parents or guardians insurance. Therefore, check with the company where you carry your own insurance before checking with others. Some parents choose to purchase a vehicle in their names and just add the teenagers and vehicle to their policies. Other parents will purchase a vehicle in the teenager's name and put them and the vehicle on a separate policy. Here however, either way you go the premium will be almost exactly, if not exactly, the same. The only advantage of putting a vehicle and policy in a teenager's name is to let them have the responsibility to pay the premium.
Another thing that can keep auto insurance for teenagers slightly cheaper is to make certain the company gives discounts. Some of the discounts that apply can be driver's education or other driving classes, safe driver discounts, multi-policy discounts (if the parents also have other policies with the company), and multi-car discounts (unless the vehicle is on a policy by itself). Then there should be discounts when the teenager turns 21 and 25 years old, and some companies offer discounts at 18 years of age. Some insurance companies will also offer discounts if the teenager will sign promising to always wear their seat belts, to never let another teenager drive the vehicle, and to never let other teenagers ride with them until they have had their license for at least one year.
One thing you definitely want to ask your insurance company is if they have the first accident forgiveness policy. Since it is a proven fact that most teenagers will have their first accident within the first year of getting their license, this is a must to ask the company. If they do not offer this you may be looking at paying an outrageous premium for insurance or actually getting the teenagers insurance cancelled completely. Once the policy is cancelled, it will be extremely difficult to find a teenager auto insurance.
If the insurance for your teenager seems to be excessively high at your insurance company, check around for other insurance for the entire family. Auto insurance for teenagers should be fairly expensive, but it should not be to the point that it seems to be robbery. For example if you carry just liability on an older model vehicle and have a 16 year old driving it (now this is depending on the make of the vehicle), the premium most of the time should be around $300 per six months including all the discounts. This is also providing the teenager has had no accidents or violations.
If you do desire to get a teenager a high performance vehicle, be prepared to pay for the insurance. Just liability on those types of vehicles can run anywhere from $550 for a girl to $700 for a boy, and this is just for six months. Of course, that means a high performance vehicle with just liability will run you $1100 up to $1400 or more for one year of coverage. So you really want to be cautious of these automobiles. If you have any questions as to whether or not a vehicle is high performance, simply get the vehicle identification number (VIN) and call your insurance company to find out. They should be able to pull up all of that type of information from the VIN number.
One more thing to be aware of is the fact that you will pay more for a male than a female. According to the Department of Insurance males and females may have about the same amount of accidents, but males tend to have the more serious accidents than females. Typically a teenage male's insurance will run around $150 to $300 more than a teenage female's auto insurance.
Therefore when preparing for a teenager to get his/her auto insurance, make certain to decide what type of vehicle first. Ask about all discounts that can apply to their policy. And just be prepared to pay higher premiums for males than females.
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