Young driver insurance provides protection for inexperienced drivers, but premiums can be high due to the increased risk. Insurance companies may offer discounts for good grades or completion of a driver education course. Parents can also lower premiums by insuring teens on less expensive cars or raising deductibles.
Young driver insurance, sometimes known as teen or teen driver 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 can also reduce young driver insurance premiums if the young driver in question meets certain criteria. The additional costs associated with a teen driver warranty are reflected in both independent young driver insurance policies and household policies that cover one or more young drivers in the family.
Insurance premiums and coverage are determined in part by the level of risk associated with the insured. Unfortunately, young and inexperienced drivers can get into accidents as a result of carelessness, immaturity or, in some cases, under the influence of drugs and alcohol. Parents looking to insure their minor children as drivers may find their auto insurance premiums skyrocket. In some cases, parents can lower these premiums somewhat by insuring their teens only on less expensive home cars or by raising their deductible. It may be worthwhile for parents to shop around for young driver insurance to see if they can find a better deal than what they are currently paying for.
Some insurance companies offer special incentives to young drivers insurance customers that encourage various types of responsible behavior by offering premium reductions. For example, young drivers who maintain high grades in school may qualify for a significant discount on their premiums. This program generally requires the young driver to regularly submit their report card or grades to the insurance company for review. The rationale for this young driver insurance discount is that students with better grades may be less inclined to behave riskily now and in the future.
Another way for teen drivers to lower the premiums they pay for car insurance is to complete a driver education course. In some places, driver’s education is not a required course in school, but may be offered to those who wish to take it. Some insurance companies will reduce young driver insurance premiums if the student can show that they have completed a full driving and road rules course. While some experts believe extensive driving experience is more effective in preventing accidents than classroom education, insurers continue to reward those who have completed a classroom program.
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