Who Has Lowest Rates on Car Insurance For Teenagers
Reader’s Question:
I’m 18 and I am shopping for car insurance. I am quite frustrated with the high rate quotes that auto insurance companies are quoting for me. Why is this so?
Paul
Los Angeles, CA
You should not be surprised that car insurance for teenagers is more expensive that you have thought. Car insurance is expensive because statistics reveal that young drivers are involved in more cases of car collisions and damages. Car insurance companies base their rates on this statistic, which makes it hard for you to get cheap car insurance.
Likewise, young drivers like you do not have the years of driving to speak of. Because you may have started driving for a maximum of 2 years, your driving history is too short. You are still an unproven driver. Car insurance companies will regard you as a risky driver, thus you will be given expensive car insurance for teenagers.
But fret not. You can still lower your charges. First, you must enroll in a defensive driving course. Take one with a company that is recognized by your insurer. You should also try to do good in school, since students who have high grades in school are considered responsible and thus low risk drivers by car insurance companies.
Ask for discounts, you never know what you might be able to get and how much you can save by asking. Some popular discounts can be given for:
1. Military personnel
2. Good grade students
3. Union membership and bank member affiliations
4. Safe drivers with no claims in last 7 years
5. Defensive driving school attendance
6. Clean credit history – used by many carriers to determine payment risk
Teen Driver Auto Insurance Discounts in Florida
Reader’s Question:
My daughter is so excited about getting her license as she can get behind the wheel of her own car that we will buy for her. I know that the best thing that I can do is to look into the cost of car insurance that covers a teen driver here in Florida. Will I ever get affordable teen auto insurance? Seems the insurance rates are as much as the car payments each month!
Anne
Miami, FL
There’s no question that teen drivers are known as “high risk drivers” by any insurance company, especially in Florida. Not much to your surprise, that means more money to fork out. Also not to keep your hopes up but, you could still be able to get the cost down of your daughter’s car insurance and even give you some extra freedom.
There are simple ways to help you keep your daughter’s car insurance as low as possible. You can add her to your insurance plan. This may seem strange but when she is signed on your insurance plan, it lowers the cost for her even if you are paying for it. If you live a hundred miles away from your daughter’s school, you can ask her to leave her car at home and also allow your insurance company to know about this. It could also reduce the cost of her policy if you can get her ride with you on occasion to reduce the number of miles she goes.
Make sure also that you daughter has good grades as majority of insurance companies will offer “good grades” discount on teen car insurance. The idea behind this is that good students are also good drivers. Believe it or not, but getting a straight B or better is enough to get good grades discount. So I advise you to encourage your daughter to do well in school as she will benefit from it as well.
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