No two words can fill parents with more unutterable dread than "teenage drivers. Why is it so expensive to insure teen drivers? Insurance companies calculate premiums based on the risk of an accident.
When it comes to teen drivers and car insurance, things get confusing - and expensive - very quickly. It's even higher if the teen has his own policy. Now, that we've reviewing those sobering facts, let's guide you through your auto insurance buying.
So you've got your new driver's license and, as you're probably aware, it's illegal to hit the streets without auto insurance. You probably also know that insurance rates are based on how likely you are statistically to get into a crash. Unfortunately, as a first-time driver, the numbers aren't on your side.
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Due to the litigious nature of our society and the rising costs of vehicles, car insurance rates are on the rise across the country. Insurance companies will offer what amounts to a bulk rate because they want your business, and under some circumstances, they are willing to give you a deal if it means you'll bring in more of it. Generally speaking, multiple drivers must live at the same residence and be related by blood or by marriage.
While most parents choose to simply add their teenage drivers to the family insurance plan, that simply may not be the best strategy. Establishing a separate insurance policy for teen drivers has two big benefits — one for the parents and one for the new teen driver. Check it out:.
According to the National Safety Council, inexperience is the leading cause of teen car crashes. Most parents have college on the brain when they encourage their kids to make good grades in school. Dave never recommends buying a brand-new car because the value drops as soon as you drive it off the lot.
Ah, yes, making fun of teenage drivers and their abilities behind the wheel. As much as 80 percentaccording to InsuranceQuotes. Still, there are some ways to hold down insurance costs when you have a teenage driver in the family.
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