Finding cheap car insurance for teenagers is a bit different from the regular driver who has been on the road for a while. Teenage car insurance typically costs more than car insurance for older and more experienced drivers. On top of that, male teenagers often have higher rates due to the higher risk they pose.
The Risk of Teenagers
Insurance is all about risks. The insurance company agrees to coverage part or all of a certain amount of problems that arise. In the case of auto insurance, they agree to cover a certain amount if there are accidents that cause damage. However, they charge you premiums each month to deal with the risk. If there was no risk that you could get into an accident, insurance wouldn’t be needed.
In reality, there is a chance you will cause an accident or be in an accident caused by someone else. Your company will pay more if you cause the accident. Therefore, if you are more likely to cause an accident, you are bringing more risk to the company.
As a teenager, you have several factors working against you. First, you have never had insurance or any kind of driving record, so they don’t know what kind of driver you are. You could be the best, most cautious driver ever, or the most careless driver ever. They don’t know, so they lump you in with teenagers as a whole.
Teenagers in general, are more risky because they tend to cause more accident. They have less driving experience and therefore, may not make the best decisions. Also, teenagers like to show off when they start to driver or are a little overconfident, which causes careless activity on the road. As a whole, teenagers are riskier. Male teenagers statistically cause more accidents than female teenagers.
Car insurance premiums are determined by actuaries who use probability and statistics to compute them. Teenagers statistically cost insurance companies more money, and are therefore, charged higher premiums.
How to Save Money on Teenage Car Insurance
In order to save money on teenage car insurance, shop around. Talk to your parents about possibly being on their insurance policy. Find a company that charges you minimally while giving you the most coverage possible. Also, look for discounts. You can often get a discount for taking a defensive driving course or for getting good grades in school.
The Importance of How your Driving Affects your Premiums
If you’re a little frustrated with your prospects and the fact that car insurance companies assume you’re a bad driver, you have a chance to redeem yourself. If you prove to be a good driver, your rates will drop. If you prove to be a bad driver, your rates will skyrocket. Avoid accidents, don’t get traffic tickets, and drive carefully, and you can get the lower rates you deserve. While your avoiding accidents and keeping the roads safe, you can save a few lives while you’re at it. It’s a win win situation.