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The premium cost of car insurance for teens is on the high side and it has been observed that parents and their teens have limited option as regards insurance for teen drivers.  It should be noted that teen drivers do not require a separate insurance policy and it is ideal and economical that parents include them as beneficiaries of their own insurance policies. 

Is there an Insurance Policy for teens? When a teen owns a car property it is vital that they purchase a car insurance policy. In some states teens are not allowed to acquire ownership of car properties until they attain the legal age, in such a case the teen’s parent will have to join in signing for the ownership of the car property. Schedule an appointment with the sate vehicle agency so as to discuss about state policies on exclusive ownership of car property by teens.

Will Insuring a Teen Driver Raise Parents’ Rates? Obviously, having your teen benefit from your car insurance will definitely increase your premium rates but if properly handled it will not put a hole in your pocket. In order to keep premium at an affordable level there are some practical processes that must be followed.

Tips to Save Money On Teen Car Insurance There are several factors that influence premium rates in which parents and their teens can take advantage of and they are as follows:

Teen Drivers

Obtain good grades.

In most cases, when teen drivers obtain good grades in school activities most preferably a ‘B average’, Insurance firms furnish them with good student discount. This goes a long way in reducing premium cost.

Enroll in driver’s education.

Undergoing driver’s education even if it is not required in the state policy gives teens an edge because insurance firms provide discounts for teens that had successfully concluded a driver training course. It will do you and your parent much good if you give it a thought.

Take an additional driver training course.

It has also being proven that an extra training course puts you on the path to a reasonable premium charge. In the short run, extra training affords you a reduced premium cost and inculcates in you the need to practice safe driving which affords long lasting benefits.

Avoid pushing for a fancy ride.

There is truth in the saying that when you ride in an expensive automobile prepare to pay a high premium fee. Luxury or trendy cars attract high premium charge as compared to utility vehicles and old models.

Pay a higher deductible.

The fact is that discounts are given to drivers who had proven themselves as good and safety conscious driver’s overtime. It is a wise to ensure that your first driving years are safe and void of accidents, in that case you will surely get a car insurance discount in the future. Most insurance firms are sceptical and this is because they know that young people are young and adventurous, so they want to be on the safe side when granting car insurance services to inexperienced drivers.

Parents

The following approaches can help reduce premium cost when your teen is acquiring her license and you intend to include her to your insurance policy.

Ask about multiple-vehicle auto insurance discounts.  Discounts are given when an automobile is incorporated into a policy with one or more existing automobiles.

Purchase and suggest that your teen acquires a Sensible vehicle. In this context ‘sensible’ refers to an automobile with high safety ranking (safety components attracts bonus points) and certainly not a posh vehicle which prompt higher insurance cost.

Consider increasing your deductible. Increasing your deductible leads to a resultant decrease in premium cost.

Think twice aboutcollision and comprehensive coverage. Ensure that your teen is aware of the financial implications of her actions when driving an older model vehicle which is not financed. When this is done unnecessary expenses will not be incurred.

Inquire from your insurance vehicle agency if you can add your teen as an ‘occasional or pleasure use only’ driver. When your teen is listed as the main driver of the vehicle the premium cost will be high.

Other Discounts. It will be of great benefit, if you also make enquiry about other discounts provided by the insurance firm. This is essential because you might not be aware you are qualified for some discounts provide which may be unrelated to your teen driver insurance issue. If you have faithfully engaged the services and renewed your insurance policies year after year, employed the same insurance firm to provide cover for your home and car, been safety conscious over time, undergone training and a driver’s education course or always made full single payment on your annual premium then for a certainty you are qualified for a discount. Honestly, if you had always adhered to the aforementioned points and you are not furnished a discount then it is time to seek the services of other firms who are customer oriented.

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