The Car Insurance Ratings System For Teenagers

The cost of car insurance for teenagers can be expensive, and is almost always determined by the way teenagers are rated as drivers. Statistically teenage drivers are involved in more accidents than are older drivers; therefore, they represent a much bigger risk to automobile insurance companies. But, all teenagers are not viewed the same when it comes to insurance policy premiums.

Factors Determining Teenager Auto Insurance Rates

Insurance companies consider many factors when pricing policies, where teenagers will be driving a car. For example, teenagers that drive the family car only occasionally - will generally be charged premium rates much less than teenagers that have their own car. Furthermore, teenagers that are added to the parent’s policy will almost always enjoy cheaper insurance rates than teenagers that are not.

Other factors that may impact the cost of car insurance premiums for teenagers are: how far a teenager works, or goes to school, from their home or what kind of grades the teenager receives in school. Students that study hard and get better grades tend to make better, more responsible drivers, and insurance companies know this. Therefore, insurance companies will usually offer discounts for teenage drivers that do well in school.

Other Ways to Improve a Teen’s Driver Rating

Still, there are other ways that teenagers can improve their insurance driving rating, which will allow for further reductions in insurance premiums. For example, many high schools offer a driver education and safety course that teaches students the fundamentals of responsible and safe driving. Many insurance companies will reward successful completion of these courses - with lower insurance premiums.

Likewise, if a teenage driver enrolls in a defensive driving course and successfully completes it, then he/she may be eligible for even more discounts. In short, insurance companies reward teenage drivers that make an effort to learn as much about responsible driving as they can.

Other Ideas for Reducing Rates

In addition to improving a teenage driver’s insurance driver rating, there are other ways to help reduce the cost associated with the teenager's insurance premiums. For instance, you might consider raising the deductible on policies that include teenage drivers. By raising the deductible, the insurance company has reduced risk and will offer lower premium rates.

A sure way to reduce a teenage driver’s insurance premiums is to let them drive smaller and less expensive cars. While many teenagers like to drive fancy sports cars, they are very expensive to insure - even for adult drivers. Allowing the teenager to drive smaller, more practical cars will help greatly reduce the amount of insurance premiums paid.
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