Ways to Save on Car Insurance for Teens.

Car insurance rates are created after weighing several factors. Accident statistics weigh heavily on rating driver risk, and unfortunately teens record the highest amounts of serious accidents and fatalities of any other age group. It's understandable then, that teenage car insurance premiums are the highest of all groups, currently averaging over $3,500 per year in the U.S.


A majority of states have implemented Graduated Driver Licensing, which is a system created to reduce new driver accidents and the resulting injuries and fatalities. This program starts drivers out as "learners" with limited driving permissions. They are gradually allowed more responsibilities, including driving later at night, unsupervised driving, and number of passengers. Insurance rates stay high throughout this graduated period, and drivers usually don't get standard pricing generally until the turn 25 years old.

Parents can really help develop the teen driver by spending the necessary time training them during their earliest "learner" period. Parent-Teen contracts have become more popular, outlining rules and punishments that the teen must agree to before taking on the responsibility of driving.

Suggestions for Reducing Auto Insurance Costs for Teens
1. Help the teen driver be responsible and maintain a good driving record. With a good driving record, Insurance premiums will start decreasing after attaining age 19 (by as much as 25% or possibly more). At 21 years of age, rates will decrease a little more with a good record. Then, standard rates can finally be requested once the driver turns 25.

2. Usually, keeping the teen on the family insurance plan as long as possible will help reduce costs. There could be a 10% or more discount offered by your insurance provider for keeping multiple policies together. It's wise to compare rates for a separate policy - you may get lucky and find a lower priced option.

3. Many insurers provide policy discounts to teens that achieve at least a "B" average in school, and for also completing additional drivers' education courses. The savings for taking advantage of these can really add up.

4. My final suggestion is to keep a good credit record. Many people don't realize that one measure of risk insurance companies consider is how you and the teen driver handle credit. Bankruptcies and charge-offs can negatively affect the rating for your policy, leading to higher rates.

These suggestions will hopefully help you save substantially on teen car insurance. You'll be happy you spent the time and effort.