Facts about Teen Car Insurance
You probably know the common perception out there: Teenagers drive recklessly, drunk, high, and on the phone. It is frightening to think that your son or daughter is on the road with all of the other drivers out there. From the perspective of an insurance company, all teenagers are at risk, and the insurance companies will, by default, charge higher premiums for your teen car insurance policy. There's good reason to charge more: NHTSA statistics show that a whopping 252,000 teenagers injured themselves in traffic accidents in 2007. This is why insurance companies have to raise the rates for which they provide coverage for teenage drivers.
Insurance companies provide coverage and analyze the risks involved in insuring a vehicle that has a young driver at the wheel. Parents that insure a teenager face some astounding increases to their insurance policies by adding a teenager to their policy because of the high risk associated with teenage drivers. In fact, adding a teenager to your auto insurance policy could raise your rate by as much as 50 to 100% according to the Insurance Information Institute.
It is against the law not to insure teenage drivers and thus, to drive or not to drive is the question for your teenager. If they choose to drive, you have the choice of adding them to your own insurance policy or take out a separate policy specifically for them.
Ways to keep your teenager involved
One way to keep your teenager involved in their auto insurance policy is by sharing the cost of insuring the car. Explain to them that sports cars may be considered cool amongst their peers, but are the most expensive to insure. If they plan on working to insure the vehicle, they will understand the value of keeping their driving record clean in order to maintain lower costs for coverage.
Good grades in school and responsible behavior often lead to lower rates for teenagers. Discounts are offered to good students with good driving records. This can be a motivating factor for teenagers who want the privilege of driving and feel responsible for their new freedom to drive.