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Car Insurance Rates For Teenagers

Car insurance is for many people an expense uncomfortable for their budget, but necessary. The situation is even more complicated for teenagers which usually have to face higher rates than most drivers. The reasons that have determined car insurance companies to offer spicier prices for their teenage customers are usually provided by statistics.

For example, one of the statistics says that the risk of a teenage driver to be involved in an accident is three times greater. These high risk drivers are also more likely to violate traffic laws, many times because they love speeding and driving at night. They are also prone to mistakes that can result in terrible accidents, mostly because of their lack of driving experience. Many also consider teenagers to be reckless behind the wheel.

What I can tell you about the car insurance rates for teenagers in 2011 is that they’ve increased. The rates have increased for both teenage and student drivers that have an age between 16 and 24 years. The specialists in the field have announced a growth by 15.1% of teenage car insurance rates from September 2010 until January 2011, from an average of $2,030 to one of $2,337. These are the numbers that prove teenage drivers are the age group with the highest car insurance rates on the market. The situation is quite the same for young students as well. The increase was by 5.5% for the car insurance rates established for drivers with ages between 20 and 24 years. In August 2010 the average was $1,612 while in January 2011 it grew to $1,701. From another point of view, the annual premiums for US drivers have actually declined from April 2010 until January 2011 by 10.8%. That means that instead of an average of $1,618, American drivers are now required to pay $1,441.

Considering how high car insurance rates are for teenagers in 2011, I’m sure you are already thinking if there’s any way you can lower the overall price. There are a few solutions especially if we’re talking about a teenager with good grades (with at least a “B” or a 3.0 grade point). That’s because most of the car insurance companies on the market usually offer a 20% discount for such teenagers. Also eligible for a discount will be a teenager that agrees to be part of a safety driver program that belongs to a certified institution. Also important for the insurance premium is the type of car the teenager decides to drive. It’s recommended to start with an older car and keep a clean driving record in order to be able to later on advance to a new car without having to pay considerably more for your car insurance.

Another option can be considered if the parents are willing to include their teenage son in their policy. It will result in an increase of the parent’s premium, but the parents can decide to make the teenage son responsible for paying the difference. That may be a way to determine the teenager to respect traffic rules and keep the insurance cost low. The increase can also be compensated by driving less miles a year. That is an argument which usually convinces insurance companies to offer a better deal. The parents will only have to limit the number of miles their teenage son is allowed to use the car.

It’s true that the car insurance rates for teenagers are high, but there also ways to reduce the cost if you are willing to make a few compromises and be a responsible driver even as a teenager.


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