Cars Automotive

Cheap car insurance for teenagers might seem like an unrealistic prospect, as teens are prone to more accidents than adults starting in there mid 20s. The chance of a teenager getting in to a car accident is so much higher than the rest of the demographics that the insurance companies set the premiums sky high. So is there any way to get a lower premium for a young driver? Yes, there is, as the insurance agents look at many different factors before setting the price of your policy.

The first thing they will look at will of course be your age. Age in itself will be a deciding factor, as prices usually start at 50% to 250% higher than for a middle aged person with a good traffic record. But there are other things they will look at as well, like your school grades. Yes, how you perform in school is a statistical indicator as to how you will perform in traffic. The responsible teens that are doing well in school are also more responsible in traffic. And this is the name of the game; the insurance companies want to pay out as little as possible in damages, and they therefore price the policies higher for people that they deem as higher risk in relation to getting in an accident.

There are also other factors that are considered when pricing car insurance for teenagers, such as how old your car is, how much horsepower it has, and how high deductibles you go for. Again, the insurance agents want to have safe customers in traffic, and if your car is safe, and isn’t build for high speed, you insurance premium will be priced thereafter.

You might want to check with your parents if they can add you to their existing policy. This will of course make their policy more expensive, and might even trigger higher premiums on all their cars with the addition of yours, but the total cost should be lower than if you go out and get your own policy.

This entry was posted on Friday, March 5th, 2010 at 5:56 am and is filed under Car Insurance.