Teenage Auto Insurance Policy Cost Saving Tips

Your teenager is excited with his new driving license. They are raring to go. You are also as excited and happy as your kid. However, most of the excitement wears of when it is time to take the car insurance policy. You will be surprised, if not stunned, to see the skyrocketing cost of the policy quoted by most of the auto insurance companies for your teenager.

Why does the Insurance companies quote high premium for teenagers?

Well, the answer is very simple. They consider teenage drivers are high risk category due to their lack of driving record and they tend to make more accidents.

In that case, how do you go about solving this issue?

You can show the insurance companies that your teenager is an exception and once they are convinced, they will move your kid’s insurance application from very high or high risk to the low to medium risk category.

Please understand that broadly classified, the insurance companies will look into only two factors. That is, your teenage child as an individual and the next is the vehicle they are going to drive.

Follow this below tips and you can save huge amount on your kid’s auto insurance policy.

• If your teenager has good grades at school or college, mention this and this has a positive influence in reducing the premium cost.

• If he/she has participated in any organizations which has helped the society in some way (Red cross for example) this again will add value.

• Have they taken driving lessons and scored really high? This will be a definite plus.

• If you can figure out how much they are going to drive approximately, you can take advantage of the mileage discount programs offered by most insurance companies.

• If you have spare cash at your disposal, opt for an annual payment of premium instead of the monthly bills which will get you some good discounts.

• Buy a basic model instead of the big sporty vehicles. Big sporty vehicles simply add the cost of the insurance; it does not benefit you in any way.

• Buy auto models which have less collision and theft rates.

• Install the security system like anti collision brakes, air bags etc in your kids car.