Insurance Articles

One of the biggest things that a child looks forward to as an adolescent is the day they will be able to drive. By the time their sixteenth birthday rolls around they are eager to run down and take their driving test, get their driver’s license, grab the keys, get behind the wheel and experience their first taste of freedom. Unfortunately, throughout all of the anticipation and excitement there is one thing that they may have forgotten about, auto insurance.

Many parents are not as excited as the apple of their eye when they become licensed. This is because car insurance for 16 year olds can be quite expensive. There are many reasons for this, one of which is that they barely have any experience behind the wheel. Just as anything else, experience goes a long way and is especially important while operating a two ton vehicle. In addition to lack of experience causing a teen’s rates to be higher, they are statistically shown to be more irresponsible on the road, especially with teenage passengers and they have a more difficult time recognizing dangerous situations and avoiding hazards. It is for this reason insurers view them as a higher risk to insure compared to more mature drivers and charge them accordingly.

Cutting the Cost of Auto Insurance for a 16 Year old

While it may seem like an uphill battle finding affordable coverage for a newly licensed sixteen year old, there are some ways that reasonable rates can be obtained. The first step that should be taken is to compare as many quotes from as many companies as possible. Some insurers specialize in insuring high risk drivers and others find them as a profitable customer due to the fact that their teenage clientele base has earned them profits. On the other hand, while shopping around one may see the rates of some companies to be astronomical and this is because they have experienced significant losses with this particular age group and have raised premiums to protect them from future claims.

When comparison shopping teens should see if it would be more cost effective to be added on to a parent’s existing policy or shop other insurers with their parent as the primary insured. This will probably end up being cheaper if they are to drive a vehicle that is already owned. If there is a higher end automobile on the policy, the teen may drive up the cost of coverage and it may be better to obtain their own policy with a lower end vehicle. If a child is to get a new automobile, remember that vehicle type plays a big factor in affecting premiums. Get car insurance quotes on automobiles before making a purchase, one will be surprised how much the rates will differ even with vehicles in the same class. The Ohio Consumer Guide to Teenage Auto Insurance suggests to maintain good grades in order to be eligible for a good student discount. Other discounts may be offered such as one for completing a safe driving course. Remember to shop around and take advantage of discount and a cheaper rate may be found.