Driving cars is the one of the most obvious interests of any teen. The parents then would face the hectic problem to fulfill their ward’s liking with an expensive car model. The insurance rates or premium can be a real issue for moderate-income class. The insurance rates drain a greater deal of money from the pocket. This is because the probability of teens causing accidents is three times higher than the probability of accidents caused by adult persons with greater experience in driving. Refusing the children for driving and allowing them to grow up and own a car later is a possible solution.The following factors influence the insurance premium rates:
• Type of cars• Previous driving experience• School grades• Ownership of the insurance policy
Type of cars
Teenagers usually go for expensive, good looking and fast moving sport cars, which are so allergic to the insurance agencies, that they may not even provide insurance or tend to pose a very high premium. While, switching to cars of older model, heavier and other normal features are greatly favored by the insurance agencies. Heavier cars are seldom driven fast, reducing the possibility of frequent accidents. As the value of the car reduces, the premium rates also drop. This is one of the tips that a car buyer should think about before investing in a car. It would be the parent’s responsibility to take a safety measure to save the ward’s life. It is as well important to give the ward a car that he or she would dream about.
Past driving experience
If you have a good driving history, with no charge of ignoring of traffic rules, it helps to reduce the premium of the car insurance. Avoid claiming the insurance agency for smaller problems like bend problems in cars, scratch, and simpler stuff that could be easily done by you. When you do this yourself and maintain a proper receipt of all these repairs then this might cut down the premium vastly. If simpler problems are claimed, then the premium rates may even double.
Proud to see the children maintaining an average of B grade or higher? The insurance agencies are also proud to provide such candidates with premium amounts cut down to a maximum of up to 25%. As long as the school grades are good, the insurance premium comes in your pocket budget. If the student can show that he is using the car on a regular basis and have a good academic record, the insurance rates drop drastically.
Ownership of the policy
Sticking with parent’s car insurance policy can be a factor in deciding the premium rates. If the teen is added on to the family list as an occasional driver, the premium rate is reduced by a smaller percentage. Some agencies allow insurance policies only after joining the young with parent’s policy. This can increase the rates, but as time passes and the ward does not prove to be a troublesome driver, the amount will reduce gradually.
Considering the car is older and cheaper and the teen is a safe driver, it becomes easier for them to earn the trust of the companies and have a policy on their own. Having an insurance policy given to a teen is itself considered more than twice by the insurance agencies, which is the reason they have higher premium rates. However, choosing the best insurance company within the local area and gaining a good trust, will help reduce this amount drastically in the end.