Teen Auto Insurance Rates can be Managed

Happy teenage driverAuto insurers often charge higher premiums for teen drivers, but parents can still keep costs manageable.

Statistics show that teen drivers are four times more likely to be involved in an accident, said auto insurance expert John Pirro. A first-time driver at age 16 is three times more likely to have an accident compared to drivers between 17 and 19, he added.

That explains the higher premiums on auto insurance for teenagers when placed on a parents policy, or purchasing policies of their own. Even so, families can save by shopping around and comparing quotes from different companies, Pirro advised. Premiums can vary greatly from one provider to the next – sometimes the same coverage can differ by 200 percent between two companies.

Some insurers will provide discounts for students who average a “B” or higher on their report cards, Pirro explained. Others will offer discounts for teens who have completed driver education courses, have a part-time job, or drives a car with anti-theft and safety features, according to the Utah Insurance Department. Drivers under age 25 are typically considered a higher risk to insure by many companies, said the department.

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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