Auto Insurance and Teenagers

Celebrating a birthday and getting a driver's license is a dream for most American teenagers. But the costs of insuring a teen driver and making sure that teen is prepared to take the road can be quite costly. While finding great auto insurance rates might seem like the priority when it comes to teen drivers, understanding the statistics and safety concerns are equally important. Before your teen driver takes the wheel, be sure he/she is truly prepared for the road.

Savings on teen auto insurance rates

While teenagers are extremely expensive to insure - some figures state that a family's premium will double or triple when a teen becomes insured - there are some ways you can find savings overall. Consult your insurance carrier to find out if any of these tools will help you save money.

• Raise your deductible: While this will result in savings, it's a risky proposition. If you raise your deductible and file a claim, you will be responsible for more money out-of-pocket. And remember that teen drivers are among the most likely age group to be involved in accidents. While it will save you money, it could cost you in the long run.
• Get competitive quotes: It might be time to look at new insurance companies, particularly when your teen enters the picture. Be sure to get competitive quotes from several different insurance companies. Services such as GreatAutoInsuranceRates.com can help you through the process, which you can conduct from the comfort of home. Carefully review the proposals and make sure you're getting the best coverage for the cost.
• Get instruction: If your teen driver enrolls in a defensive-driving class, you could find significant savings on your premiums. These classes teach smart driving habits and have been found to statistically reduce the likelihood of an accident. As a result, some insurance companies will lower your premium after your son or daughter completes the course. Be sure to talk about this with your insurance agent ahead of time.
• Make the grade: Teens who get good grades tend to be less of an insurance risk. As a result, their parents pay less for insurance.
• Make a deal: Some families find that if their teen drivers are financially impacted by the privilege of driving, they will drive safer. Set up a plan where your teen contributes to his/her insurance costs. Perhaps he/she will be more cautious on the road when aware that an accident could cost them money.

Teen driving statistics

While they might be frightening, they are true. Teens are among the most dangerous drivers on the road, which is why they're so expensive to insure. Here are some statistics about teen drivers:

• Those drivers ages 15 to 20 account for 12.9 percent of all driver fatalities.
• According to research by the Insurance Institute for Highway Safety, the death rate for 16- and 17-year old drivers will increase proportionally with each additional passenger in a car.
• The leading killer of people ages 15 to 20 is car accidents.
• A teenager is three times as likely to die in a car accident as drivers ages 25 to 64.