Cheap Auto Insurance Rates
Newly licensed teenagers between the ages of 16 and 19 have a statistically higher chance of being involved in an accident than any other age group. Unfortunately, this can also translate into higher coverage costs when it comes time to purchase auto insurance. Policy prices are largely based on the likelihood that a motorist will be involved in an accident or file a claim, and multiple studies have concluded that young and inexperienced drivers are more likely to operate a motor vehicle without a seat belt, drive while intoxicated, speed and take unnecessary risks. Insurers often charge younger drivers more for coverage to compensate for accepting these additional risks.
Young drivers hit things. They are not just inexperienced, they are immature. They have no driving history, no credit report, no continuous record of coverage — none of the reassuring factors insurers like to see as they consider how to price car insurance for new drivers.
Until that day arrives, teen drivers are lumped together in a very costly and sometimes unfair basket.
A cheap car isn’t necessarily a solution, although it helps. Insurance companies are just as worried about the damage a new driver can do to other people and property.
Maintaining a clean driving record and an exceptional grade point average while in school can often lead to discounts and lower rates for teenage drivers. While shopping for quotes, it is important to research the various discounts that may be available. These savings can often result in noticeably cheaper prices and a strong incentive to maintain a clean driving record.