Teenage automobile insurance is relatively more costly than that for more experienced drivers generally, but there are ways that a family can make it less expensive. Insurance companies charge more to insure teenage drivers because they consider young people a significant risk. In some states, teenagers as young as sixteen are legally allowed to conduct a motor vehicle on the public roads, and parents have to pay more for this privilege.
In determining the rates that they will offer their customers, insurance companies take into consideration, in the very first place, the likelihood that this person will be in an accident of some sort an have to file a claim against the assets of the company. They are in the business of selling peace of mind, primarily, and would rather not have to pay out monies, so if a potential customer appears to present a higher risk for them, they will charge that person more, will place greater restrictions on the driving privileges, or will request that certain extraordinary requirements be fulfilled before they will consider issuing a policy.
Companies who sell automobile insurance agree to cover the cost of repairs or damages and injury that the automobile might sustain in an accident. Every time an accident occurs and a claim is made, it costs the insurance company money. The likelihood of this happening is the risk that consumers pay for as their premium. This is the amount of the car insurance quote that parents get when they seek coverage for their teenager.
Industry estimates indicate that hundreds of thousands of teenagers are injured in motor vehicle accidents every year, or cause injury to others, and it is common knowledge that too many of them die as result.
Teenage drivers are thought to be more prone to accidents, in contrast to senior citizen drivers, primarily because they have very limited experience, and are less likely to respond efficiently and quickly to hazards they encounter on the roads. This makes it relatively difficult for them to avoid certain accidents, even though they might have sharper reflexes than older drivers.
Insurance regulations require that all teenage persons living under the family roof, who have driving privileges, be listed on the primary holder's insurance policy. This automatically increases the family's motor vehicle insurance payments.
However car insurance companies offer several strategies that very young driver and their parents can take advantage of to reduce costs. Some even have defensive driving programs of their own. There are also the Graduated Driver Licensing Laws that provide some support and relief in this area, though they are not uniform nationwide. Overall, however, they assist novice drivers in gaining strong behind the wheel experience that increases their skills and reduces their risk quotient.
Insurance companies, across the board, will consider offering discounts when teenaged drivers complete the specialized driver training that they indicate or offer. In some states, there are recognized training courses and insurance carriers will offer an additional discount on the vehicle insurance quotes they calculate, if the teenage driver attends training at these particular institutions.
Among these are strategies are the signing of a contract by both parent or guardian and teenager. Parents or guardians are included in all of these obligations and indeed are considered fundamental in every case. Parents and their teenage drivers must show that they have had discussions about driving limits. Things such as how far from home the teenager can go, who is allowed to drive along in the car, the importance of seatbelts and so on. Once these conditions are fulfilled, costs can become quite acceptable.