The Risks Of Insuring Drivers Under 25
One of the main reasons why auto insurance is so high for teen adults is one word – statistics. These case studies prove year after year that the risks of accidents goes up at least three times when a young person drives. The policymakers take no chances, as reimbursement is covered by them and not the driver.
Just because a driver under twenty five years old may be labeled as high risk, it doesn’t mean they’ll have to pay two or three times more each month on car insurance. There are indeed ways around hiked prices, including:
Sticking To Parents – a large discount can be scored when parents are willing to sign up their children to an existing policy. It’s similar to getting a multi-discount rate. Parents should however be vigilant about addressing road safety with their teen and young adult children, as a major accident will affect the cost of the monthly insurance. Be sure to address defensive driving, staying clear of driving under the influence and other offenses that could wreak havoc on the teens or young adult’s driving and criminal report.
Driving Lessons – enrolling in and completing road safety lessons, plus submitting this to the insurance provider is one other way of getting a discount – on your own.
Academic Incentives – high school and college students who prove they’re responsible both on the road and in school are at a higher chance of getting a bonus discount on their insurance policy. As an example, students who maintain a certain GPA will usually get discounts ranging between 5-25% depending on the insurance company. Contact a company representative to learn more.
Studying Out of State – out of state students who are a good distance away from their hometown will usually qualify for the Away At School discount offered by most car insurance providers.
The Type of Car – a safe ride is considered to be a reliable and low-risk ride. As such, when shopping for a first time car, some of the features to look out for include hybrids if possible, cars that come with antilock and antitheft features, and models that are less susceptible to theft. With these features in mind, most teen and young adults often get better rates.
Sign Up for Tracking – though a new concept, insurance companies now provide an incentive for drivers who install tracking technology. This provides the option to pinpoint the car if it’s ever stolen. In addition, the device offers other benefits including monitoring how well or poorly a newly licensed driver drives. The parent can analyze these reports with the insurance provider to prove responsibility. On the car insurer’s end, discounts are provided for installation – along with safe driving techniques.
Buy Used – many parents want to reward their children with a new car for their efforts, however buying used can provide lower rates. It’s no secret that a new vehicle comes with higher insurance premiums.
One tip however, is that used cars should only be purchased when warranties are offered and certified by the dealer.
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