Saving money on teen auto insurance

Teenage drivers cost more to insure.For parents, having a teen driver usually means having to purchase high-risk auto insurance.

There are a number of reasons that insurance premiums tend to be higher for teenagers, one of them being their lack of driving experience. They are at a higher risk of being involved in an auto accident, which leads to higher car insurance payments.

There are certain things that can be done in order to lower their car insurance rates, however. Insurance providers will often take a look at teen’s grades. Since they don’t have driving records or credit reports to go by, academic performance is used as an indicator or their risk behind the wheel. "The assumption is that teenagers that work hard in school are more responsible overall than those who don’t," financial website Favstocks.com said.

Taking a driver’s education course can also reduce their auto insurance cost. "Most insurance companies will knock 5 to 15 percent off the cost of insuring a young driver who takes teen driver safety seriously," the Creston News Advisor said.

A recent report found that teens are becoming more involved in accidents while driving at night because they are using cell phones. Distracted driving is one of the leading causes of fatal car crashes.ADNFCR-3298-ID-19788198-ADNFCR

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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