Many parents shudder at the thought of their teenagers reaching the age where they will be able to become legal drivers. Even the most responsible teenager can be expensive to insure for automobile insurance. Insurance companies almost always charge a much higher auto insurance liability rate for teenage drivers than they do for older adults who have a safe and proven driving record. This is because the teenager has yet to prove himself or herself as a safe and responsible driver. For the first two or three years of having their driver's license, teens may be subject to extremely high insurance rates through their parents' auto insurance policy.
Every household differs in how parents require teenagers to be responsible. Some households have teenagers work part time or full time jobs to help pay their auto insurance premiums. Other parents find it necessary to have their teenagers not work and focus solely on sports and academics and other common extracurricular activities that can promote positive and well-rounded social and academic development in a student.
If the teen pays for the auto insurance or if the parent pays for the auto insurance, the rate still stays the same. If the parents pay for it, this is a bill that can add another expense to yet a potentially already strict budget. There are steps that teens can take to lower their insurance premiums to make insurance more affordable for them and for their parents. Teens who take driver's education courses in high school will be viewed more favorably by insurance companies compared to teens who have not taken the course. Taking a driver's education course demonstrates that the teen not only takes driving seriously, but that he or she has passed a course on safe and responsible driving by a certified driver's education teacher.
The driver's education course is one thing that a teenager can do to lower his or her insurance. When a student volunteers in the community, makes good grades, and has a record of being an upstanding citizen, he or she will stand a good chance of getting reduced rates on auto insurance. Many insurance companies will reward students who make an extra effort to be responsible and upstanding. Insurance companies also see teens that do these things as a lower risk driver than teenagers who do not get good grades and who have no participation in community events.
Getting a teenager a sports car or a high end powerful or luxury vehicle will also dramatically increase the automobile insurance the teen is able to get. Some insurance companies will refuse to insure teenage drivers on high end sports cars out right. Other insurance companies will charge a significant amount of money for a teen to be insured in even a newer automobile. Studies have found that reliable, medium grade quality sedans are the most affordable vehicles for teenage drivers to be insured for. These vehicles are typically safer and have less speed capabilities than other higher end models.
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