It can be a little scary to hand over your keys to your newly licensed teenager. This fear is understandable. Driving can be dangerous for teens. One auto insurance company reports that 16-year-old drivers have a 1 in 15 chance of becoming involved in an accident within their first year behind the wheel. Numbers like these highlight the importance of good auto insurance coverage for your teenager. Here are five important things to consider when choosing car insurance for your teen driver.
Your teen now has one more reason to study and work hard in school. Discounts will vary from one insurance company to another, but you can generally expect a 5 to 10 percent discount on insurance premiums for a teen who shows a good attendance record and maintains a 3.0 grade point average. The benefits of education when it comes to teen auto insurance policies don’t end there. A sizable discount can also be gained when your teenager completes a driver’s education class.
The car your teen drives will have a profound effect on the price you pay for his or her insurance. Pay no mind to urban legends regarding the effect of the car’s color on the insurance rate. However, the year, make, and model of the car your teen is driving can help the insurance agency decide the rate you pay. Insurance costs for new cars are higher than rates for used cars. Also, the price of insurance goes up with the value of the car. A high-powered car that accelerates quickly will also add to the cost of purchasing auto insurance for your teenager.
The deductible is the out-of-pocket expense you’ll pay in the event your teen becomes involved in an accident. At first glance, it may seem a little counterintuitive to want to increase this expense. However, if you choose a higher deductible, the monthly cost to insure your teen will be lower. For example, if you have a $1,000 deductible, a minor fender bender will probably not require a call to your insurance company because the cost to fix the damage would be less than the deductible. In contrast, a major accident would likely make the $1,000 you have to contribute toward repairs seem inconsequential.
There are some cases when keeping your teen on your policy won’t be the best option. However, you may pay less to insure your teen if you add him or her to your existing insurance policy. You can still have your teen pay you each month for his or her portion of the bill if you’re concerned with teaching him or her to be financially responsible.
Not all car insurance companies are the same. You need to talk to a few of them before you make a decision so you know you’re getting the best rate possible. Also, experiment with different scenarios when you request quotes. Change details such as the car your teen will drive and the deductible amount to see how much the monthly premiums are affected.
An experienced insurance agent can provide you with all the information you need about getting the right auto coverage for your teenager. If you’re looking for reliable car insurance and high-quality service, call on the trustworthy agents from Altra Insurance Services. We can also provide you with motorcycle, renters, and home insurance. San Diego residents should give us a call today at 619-474-6666.