Financial Web
> Group Life Insurance
> Lowering Your Life Insurance Rates
> Choosing Individual and Family Health Coverage
> Preparing for Your New Motorcycle
> You CAN Lower your Premiums
> Finding Affordable Health Insurance
> Policy Continuation Options
> Bundling your Insurance with one Company
> The High Price of Health Insurance
> Is your Homeowners Insurance Sufficient?
> Permanent or Term Insurance: Which should you choose?
> The Necessity of Health Insurance
> Buying Homeowner's Insurance: A Process
> Sports Car Insurance
> 15 Ways to cut Your Medical Costs
> A Few Words About Dental Insurance
> Annuities
> Auto Insurance - What do You really Need?
> Annuity Options
> A Life Insurance Primer
> Beware of Unfair Trade Practices
> Blended Life Insurance
> Be Aware of these Life Insurance Clauses
> Blue Cross and Blue Shield
> Beneficiaries and the Uniform Simultaneous Death Act
> Consolidated Omnibus Budget Reconciliation Act (COBRA)
> Credit Insurance
> Comparing Life Insurance Policy Costs
> Coordination of Benefits
> Control what You Can
> Characteristics of Insurance Contracts
> Compare when Buying Auto Insurance
> Disability Insurance
> Disability Insurance for Businesses
> Endowments
> Examining Annuity Premiums
> Flexible Life Insurance Policies
> Glossary of Insurance Terms
> Government Health Insurance
> History of Insurance
> HMO vs. PPO
> How Your Insurance Premiums are Calculated
> Homeowners Insurance
> Insurance Beneficiaries
> If You’re Involved in an Accident…
> Immediate and Deferred Annuities
> Insuring Your Teenage Driver
> Insuring Your New Motorcycle
> Know your Car Insurance Policy
> Long-Term Care (LTC) Insurance
> Life Insurance in Business
> Life Insurance in Business - Part 2: Partnerships and Corporations
> Life Insurance in Business - Part 3: Corporate Life Insurance Strategies
> Limited Policies
> Life Insurance is Your Property
> Major Medical Insurance
> Medical Savings Accounts
> Medicare
> Medicaid
> Medicare Advantage Coverage
> No Health Insurance?
> Optional Disability Insurance Benefits and Riders
> Other Types of Annuities
> Paying for Dental Care
> Pass on these Insurance Offerings
> Payment of Claims
> Prepaid Dental Plans
> Rental-Car Insurance
> Rating the Risks
> Some Insurance Riders
> Some Whole Life Policies
> Sufficient Insurance for your Needs
> Specialized Life Insurance Policies
> Some LTC Specifics
> Some Common LTC Policy Provisions
> Settlement Options for Annuities
> Save on Your Homeowners Insurance
> Types of Life Insurance
> Term Life Insurance
> The 10 Best Ways to Lower Your Car Insurance Bill
> The Basics of Underwriting Insurance
> Things to Remember When Buying Healthcare
> Ten Questions for Your Managed Care Plan
> Types of Term Policies
> Types of Insurance Providers
> Taking more Responsibility for your own Health Care
> Underwriting Group Policies
> VA Health Benefits
> Variable Annuities
> Workers Compensation
> Your Health Insurance - What You’re Paying
> Your Health Insurance - and what it should Cover

Insuring Your Teenage Driver

If you have a teenager who's nearing driving age, you may be a bit daunted at the thought of not only giving the keys to your car, but also the price that's going to come with insuring them for driving. You've no doubt read the news stories. There are high numbers of teenage accidents, often with deadly consequences. Not only does this bring fear into the minds of parents who have children of this age, but also trepidation into the insurance industry that's asked to cover them. And a nervous insurance industry always translates into higher policy costs.

Technically, you really can't blame the insurance industry for raising the rates on younger drivers. They base their costs on statistics; in other words, the projected likelihood of a person they're having an accident. That means for younger drivers the rates will be substantially higher, since the risk of something happening tends to be much greater with them behind the wheel. But before you think you'll have to go broke insuring your teen to drive, be assured that there are a number of things you can do to lessen the costs and keep them down for years to come.

  • First, compare rates. Different companies have different policies when it comes to insuring teenage drivers. Shop around carefully to find the most economical rates that still offer the coverage you need.
  • Choosing a higher deductible will lower the rates for your teen's auto insurance. The higher the deductible, the lower the policy's premiums will be.
  • A car's safety features can have a positive impact on insurance rates for your teenager. Insurance companies often offer deductions for various safety features such as air bags, anti-lock breaks, security systems and other safety features that may be installed in the vehicle.
  • If your teen's school offers a driver's education training course, make sure that he or she enrolls in it. Most insurance companies will offer a rate reduction for students who have successfully completed such a program and have learned the rules of the road.
  • The type of car your child will be driving will have an impact on the insurance rates you'll pay for that car. Before you decide on a vehicle, evaluate the cost to insure it. Sportier cars are going to command much higher insurance rates since many teens are often tempted to test just how fast they can go.
  • Once your child has the car and car insurance, you must make a concerted effort to protect those rates. In other words, you'll have to make it clear to your child that driving a car and having insurance are not rights, but privileges that they need to safeguard and exercise with responsibility.

Finally, do your best to ensure that your teen is very careful whenever driving, because even one minor infraction can cause his or her already high insurance rates to positively go through the roof. As soon as a teen shows signs of being less-than-responsible on the road, the insurance company will hike its rates substantially in order to protect its financial interests.