Cheap Car Insurance for Young Driver

There are a few tricks and techniques you can use to obtain cheap car insurance for young driver teenagers.

Understanding Automobile Insurance

Why It's Hard To Get Cheap Car Insurance for Young Driver Teens

It's not difficult to see why insurance companies aren't jumping over themselves to offer teens good deals. The bottom line is teenagers are the highest risk drivers, and most often generate the highest costs in terms of accident claims.

The Odds Against Young Drivers

Unfortunately, every young driver has to face the same odds as those who have come before them. According to the National Highway Safety Administration, of the over 43,000 auto accident deaths in 2005, over 13,500 were victims under 25. The more confident these young drivers get, the more dangerous they get. While most accident injuries occur to drivers from 16 to 20 years old, most deaths occur to drivers between 21 and 24 years old.

When car insurance companies calculate the premiums that a driver must pay, drivers are placed within a "risk bracket," and age is one of the biggest factors that the company takes into account. Gender is also a factor, with almost three times as many male fatalities than females. However, regardless of gender, if you are 16 to 25 years old, you will end up in the highest risk bracket. However, there are ways that you can dramatically reduce those insurance costs and get cheap car insurance for young driver commutes.

Getting the Cheapest Insurance For Your Teen Driver

There are certain things they can do that will make the insurance company reconsider their risk factor and reduce the premium that you, as a parent, will have to pay.

Good Driver, Good Discount

It goes without saying that avoiding an accident and speeding tickets will result in better car insurance rates, but for teens that fact is even more true. Insurance companies watch teen driving records closely, so if a few years pass and there are no speeding infractions or fender benders you can be sure that they'll start giving you a better rate on you next renewal date for your teen being a "safe driver."

Another way to get lower premiums is getting good grades. Statistics show that teens that perform well in their academics also perform well on the road. Consequently, while you might already encourage your teen driver to do well in school, you can legitimately use the car insurance costs to provide even greater incentive for good grades. Show your teen how much the "good student" discount saves off the premium, and offer to give them the difference in cash the first year they qualify for the discount.

Buy a Safe First Car

Few students want to drive around the family minivan when they go out with friends, but buying a flashy, sporty car is a surefire way to drain your bank account when it comes time to pay for the insurance policy. Insurance companies rate all makes and models of cars in terms of both "speed risk," as well as safety. This doesn't mean that your young driver needs to opt for a sub-compact with a five star crash test rating, but it does mean that if you look for a sporty car, find one with all of the safety bells and whistles that will save you a significant amount on the car insurance. Factors that heavily influence car insurance rates include:

• Air bags and whether there are also passenger side airbags as well as front airbags
• Anti-lock brakes
• Stability or traction control
• Anti-theft system

The "sporty" look of a car isn't necessarily the biggest factor. Insurance companies are concerned with replacement or repair costs of a vehicle, so buying a car that has standard parts that are easy and inexpensive to replace will also reduce the premium. That means that you can still buy that "cool" car, but by practicing restraint and doing your research, you can have a car that's safe, cool to drive, and won't cost a fortune in insurance costs.

Don't Be Afraid to Shop Around

Typically, parents will get the best rates if they simply add their child to their own insurance policy as an additional driver. Be smart and make sure to add the teen as a driver for the least expensive car. If your own insurance company doesn't offer rates that seem fair, don't be afraid to contact other insurance companies and offer them your business (with both auto, home and your other insurance needs). By being diligent and doing your homework, you'll make sure that the insurance costs of having a teen driver in your household won't be a huge financial burden.

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