When a teenager firsts gets a driver's license and sets out to drive alone in a car, the insurance rates he or she will pay will likely be the highest rates the teen will ever pay for car insurance. Teen drivers pay high rates, due to their lack of experience on the roads and the high probability of getting into an accident. If you have a teenager who is getting licensed soon, here are several things to know.
You can control the rates by choosing an older car.
Rates for teens are always going to be higher than the rates for other people, unless you are insuring a high-risk driver, but you have some control over the costs, through the type of car you choose for your teen. A brand-new car will be worth more money and may require carrying full-coverage insurance. Choosing a car like this will result in high premiums. An older car is worth less money and may need liability-only coverage, which means you will automatically pay less for the insurance, if you choose an older car. If you have not yet purchased a car for your teeth to drive, keep this in mind, as you look for one.
You can add the teen to your policy to receive a discount.
Secondly, the rates for your teen's car insurance will be higher, if you purchase a separate policy for the teen. Instead of doing this, you can save money, if you just add your teen and his or her car to the current auto policy you already have. When doing this, you will instantly qualify for a multi-car discount, which is something you would not get, if you bought an entirely separate policy for your teen's coverage.
The rates will not always stay this high.
The other thing you should understand is that the rates you will pay while your child is a teen will not always stay this high. While they are likely to be higher than what you want to pay right now, in time, they will decrease, especially if your teen is able to stay ticket-free and accident-free. You, as a parent, can encourage safe and good driving habits, to help your teen drive safer and avoid tickets and accidents.
If you would like a quote for covering your teen driver, contact an auto insurance company to find out what the costs are and if there are ways to reduce them.