It is common knowledge that teenagers are more likely to be involved in auto accidents than grown-ups. As a consequence, most insurance companies set a higher premium for the adolescents, on an average. Though the average auto insurance for a teenager may be high, it will gradually come down as the person grows older and learns to drive even better.
As a driver if you do not have any claims for the insurance company, then you can avail the No Claims Discount coverage that has attractive premiums. In fact, you can avail 75% discount on the annual premium! However, at one point of time, you can receive a ‘no claims’ premium from one company.
When parents include coverage for one or more of their offspring within their policy then the cost would rise by 50%. For instance if the parent would pay $1000 as an individual premium, then he would have to pay $1500 when including his child in the insurance policy. If another child’s name is added then the premium increases again. However, these costs are considerably lesser than if the teenager would opt for an individual coverage.
- Why the person wants to purchase an automobile in the first place
- What kind of coverage is required
- Whether a high deductible is required (This helps lower premium costs)
- How old the person is
- What make of car has been purchased
- What is the price of the car
- Whether it is a brand new car or a used vehicle
- The location of the garage
- What safety accessories have been installed in the car
- What is the distance travelled (mileage) for a given period of time
- Whether the person is a primary driver or will only take the car out on rare occasions
- Whether the teenager has a good academic record. (There is a general belief that excellence in academics is directly related to responsible driving; some insurance companies offer a discount of up to 25% for students with a proven academic record; say a 3.0 GPA or an average of B)
To know the specific amount of premium for a teenager there are several websites that give you accurate and reliable information online, absolutely free of cost. By filling in the details required, one can get an estimate of the coverage and the average premium. Usually the average premium is about $1200 for a teenager.
Once a teenage decides to own a car and proceeds to get it insured, he must understand that the most significant factor is safe driving. Parents should ensure that they instill in teenage children the concept of safe driving and its benefits. Teenagers should fully realize the consequences of rash driving, the trauma that triggers from it and the enormous damage it causes physically, emotionally and economically.
Teenagers should also guard against the temptation of speed driving. If, at a point, they get hauled up for speeding, nothing can prevent the premium rates from increasing.