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How To Help Your Teenager With Auto Insurance

By Compuquotes Team on March 27th, 2008
Auto Insurance

Helping your teenager with insurance can be an expensive proposition, however if you have a teenager in your home that has their driver's license, you really don't have a lot of choice unless they have their own vehicle and insurance. Teenager insurance is very pricey and the chances that your teenager can afford their own insurance is slim to none.

You can help your teenager with auto insurance by adding them as an occasional driver onto your auto policy. This will do a few things for them that will help them get their own insurance in the future.

Primarily, adding your driving teenager onto your insurance protects you. If your teenager is driving your vehicle and is involved in a collision and is not listed as a driver on your policy, your insurance company could void your policy, cancel your policy, not renew your policy or charge you. This is why it is of paramount importance to tell your insurance company when your teenager gets their driver's license.

Secondly, by adding your teenager to your insurance policy, they are gaining valuable insurance experience, known in some places as 'stars'. The insurance companies provide less expensive insurance to people who have clear insurance experience. This insurance experience will tell the insurance company how to charge your teenager, and as they drive with no claims, their risk level goes down.

Statistically, teenagers are much more likely to be involved in a collision than older, more experienced drivers. The National Highway Traffic Safety Administration notes that the crash rate for teenagers aged 16 and 17 is three times greater than it is for 18 and 19 year old teenagers. It is because of this calculated risk that insurance for teenagers is so costly.

It does sound like all teenagers are getting painted with the same brush, and of course it is true that not all teenagers are going to wreck their cars. This is why there are a number of discounts available for teenage drivers that parents can take advantage of if their child qualifies.

One of the discounts that is available is a good student discount. Teenagers that maintain a B average or higher are eligible for this discount. Again, statistically, teenagers that are good students tend to be less of a risk when behind the wheel of a vehicle. Another discount available from some insurance companies is available for parents of teenagers who have taken a drivers education course. In some cases, the savings on your insurance could be less than the cost of the driver's education course, so it's usually a wise investment.

Other factors will also affect the rise in your insurance rate, including the type of vehicle you drive that your teenager has access to. If you drive an expensive vehicle, your insurance will raise even further when you add your teenager. It may be a wise investment to purchase an older, less expensive vehicle for your teenager to drive.

While it seems expensive, adding your teenager to your insurance policy is always a good idea, to ensure that you and your vehicle are covered in the event of an incidence while your teenager is driving.

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