Young driver insurance provides coverage for inexperienced drivers, who are considered high-risk by insurance companies. Premiums can be reduced by meeting certain criteria, such as maintaining good grades or completing a driver training course. Parents can also reduce premiums by insuring their teenagers on less expensive cars or increasing their deductible.
Young drivers insurance, sometimes known as teen or teen insurance, provides insurance protection for young drivers. Many insurance companies consider young drivers to be a significant risk and may increase their premiums accordingly. Auto insurance companies may also reduce young driver insurance premiums if the young person in question meets certain criteria. The extra costs associated with a teenage driver’s warranty are reflected in both self-contained young driver insurance policies and home policies that cover one or more young drivers in the household.
Premiums and insurance coverage are determined in part by the level of risk associated with the policyholder. Unfortunately, young and inexperienced drivers can get into accidents due to inattention, immaturity or, in some cases, under the influence of drugs and alcohol. Parents looking to secure their underage children as drivers may find their auto insurance premiums skyrocket. In some cases, parents can reduce these premiums slightly by insuring their teenagers only on less expensive domestic cars or by increasing their deductible. It may be worth it for parents to look into young driver insurance to see if they can find a better deal than what they are currently paying.
Some insurance companies offer special incentives to young driver insurance customers that encourage various types of responsible behavior by offering reductions on premiums. For example, young drivers who maintain high grades in school may be eligible for a significant discount on their premiums. This program usually requires the young driver to regularly submit his or her report card or term grades to the insurance company for review. The justification for this young driver insurance discount is that students with better grades may be less inclined to engage in risky driving behavior now and in the future.
Another way for teen drivers to reduce the premiums they pay on auto insurance is to complete a driver training course. In some places, driver education is not a compulsory course in school, but may be offered to those who wish to take it. Some insurance companies will reduce premiums on young driver insurance if the student can demonstrate that they have completed a comprehensive course in driving and rules of the road. While some experts believe extensive experience behind the wheel of a car is more effective at preventing accidents than classroom instruction, insurers continue to reward those who complete a classroom program.
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