Saturday, January 8, 2011

Cheap Auto Insurance Rates as a Young Driver

Newly licensed teenagers between the ages of 16 and 19 have a statistically higher chance of being involved in an accident than any other age group. Unfortunately, this can also translate into higher coverage costs when it comes time to purchase auto insurance. Policy prices are largely based on the likelihood that a motorist will be involved in an accident or file a claim, and multiple studies have concluded that young and inexperienced drivers are more likely to operate a motor vehicle without a seat belt, drive while intoxicated, speed and take unnecessary risks. Insurers often charge younger drivers more for coverage to compensate for accepting these additional risks.

Although younger motorists commonly encounter higher rates, getting cheap car insurance for teenagers may still be possible after a shopping around and taking advantage of various money saving opportunities. Although the majority of coverage providers prefer to insure low risk drivers in the preferred or standard market, there are multiple companies that are more than willing to provide coverage to higher risk motorists, including teenage drivers.

Shopping around and comparing quotes can give teenagers the opportunity to find out which insurers can provide the lowest rates. Evaluating estimates online can also allow motorists to see dozens of sample rates at once, increasing a driver’s chances of finding an adequately priced policy.
Cheaper Teenage Auto Insurance Prices

The high cost of vehicle coverage for teenagers is largely accredited to accident statistics surrounding younger motorists. The Congressional Quarterly states that Teen Driving has become a serious problem in recent years, as automobile accidents prove to be the leading cause of death for American teens. Studies have shown that roughly 10 teenage drivers were killed every day as the result of automobile accidents in 2003. While upholding these statistics by accumulating multiple moving violations or being involved in accidents is likely to increase a motorist’s rates, demonstrating responsibility behind the wheel can quickly lead to lower prices.

Maintaining a clean driving record and an exceptional grade point average while in school can often lead to discounts and lower rates for teenage drivers. While shopping for quotes, it is important to research the various discounts that may be available. These savings can often result in noticeably cheaper prices and a strong incentive to maintain a clean driving record.

Oftentimes insurers will reduce rates for a number of reasons. This can include discounts for maintaining a 3.0 GPA or majoring in a specific field of study while in school. Additionally, keeping and maintaining a good driver discount will likely lead to lower prices as a teenage motorist gets older. It’s important for younger drivers to shop around and explore their resources to find cheaper rates, and work towards reversing the poor accident statistics that generally lead to high-risk auto insurance for teenagers.

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