If you have a teen driver in your family, make sure that they have the proper car insurance coverage. The number 1 cause of death among teens in the U.S. are auto accidents. There is a huge increase in fatality rates for teen drivers between the ages of 16 to 19 compared to drivers between the age of 25 to 69 years old. According to a recent article in the Miami Herald, teen drivers are 4 times more likely to get into a fatal accident between the ages of 16 to 19.
So what are ways to help save on your teen's car insurance? First, make sure that your teen is aware of the importance of keeping a clean driving record. By having only one offense, such as a ticket or and/or accident, a teenager's insurance rate could take their premium to an all time high. That being stated, a record of an accident or ticket can stay with them for years and their record can only be wiped clean over time. For example, if a driver receives one ticket a year that drivers record will usually carry at least 2 to 3 tickets at a time which causes rates to go up quite a bit. Teenage drivers who care about their driving records will always prevail when it comes to getting lower insurance rates.
Other factors to consider for your teen driver are what type of vehicle your son or daughter may drive. When the time comes, whether it's a new car, a car for a graduation gift, or your own car you've been driving as a "hand me down," it would be wise not to turn the keys over to them if the vehicle if it is a sports car, luxury car, or other type of vehicle that is expensive and has the image and feel it needs to be driven fast. Teenagers are statistically shown to drive faster whether they're in grandma's car or any car for that matter. Allowing your teen to drive a safe and modest vehicle could help decrease their changes of being tempted to speed or show off.
As every parent is aware, communication is vital at this age and so are driving rules. It's imperative that your teen understands the importance of good common driving habits and ethics.
Giving the teen driving guidelines and words of wisdom from your own past experiences; this is a great way to start.
Another suggestion to keeping rates low is the amount of driving they will be doing. Insurance companies know the estimated milage of the vehicle the teen will be driving, and as a result insurance rates can increase as the estimated mileage increases. Making small steps like taking the bus to school or work will help and they can still gain driving experience throughout the summer or on weekends.
Savings and Investment Information for Teens: Tips for a Successful Financial Life; Including Faxts About Economic Principles, Wealth Development, Bank ... Mutual Funds, and O (Teen Finance Series)
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