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Auto insurance for Teenagers | Cheap rates means low cost auto insurance for teenagers. Find carriers that may extend you a cheaper rating now. Auto insurance for teenagers can be expensive where teenagers are classified high risk. But the cost of auto insurance for teenagers can be brought down and controlled with an insight into insurance pricing and the ways that premiums for any auto insurance for teenagers may be reduced. Whatever your coverage needs, find car insurers online and get the best free quotes for teens direct.

Auto Insurance For Teens
Saving you money on auto insurance for teens; collect free quotes today. Auto insurance for teenagers is provided under two basic scenarios:

auto insurance for teens

1. Auto insurance for teenagers under a parent's policy

2. A teenager holding a car title and their own policy.

Here we look at both and conclude with how you can save. The bad news is that either way, auto insurance for teenagers cost is relatively high on account of the fact that teenage drivers are regarded as high risk for the purpose of insurance rating.

Like it or not, statistics show that teenagers are involved in more accidents than drivers with more experience. In simple terms, car insurers must mitigate the risk to their business in the form of claims through higher rates. The good news is that you can still save a LOT of money here.

Auto Insurance For Teenagers On A Parent's Policy

auto insurance for teensA newly licensed teen residing in the family household impacts the insurance rating applied to the parent's policy, even if the teen does not drive any family car. Insurers must assume that with access to a vehicle, the teen driving scenario may happen. In most cases of course, the teen has permission to drive one or more family cars.

When the resident teen becomes licensed, an auto insurance for teenagers rating adjustment takes place on the parent policy. Auto insurance for teenagers under this scenario could see a parent's premium double or more. As a parent, some responsibilities fall on you:

  • As soon as a teen becomes licensed a parent should inform their insurer. Failure to do so can have serious consequences in terms of insurance protection:
  • If the teenager acquires a license during your existing policy period and the teen becomes involved in an accident, the insurer may charge you for unpaid back premium due from the date of the license.
  • If you purchase a new policy for yourself as a parent, or renew with your existing carrier but fail to declare the resident teen license holder then you jeopardize your own policy and the validity of any claim you make.
  • A "named exclusion" might be possible where a resident licensed teen becomes excluded from coverage under the parent's policy (to avoid rate hike). This would require that the teen never drive the car - ever period. Your current carrier may not allow this.
  • Check your not paying for an unlicensed teen! If your teenager has reached a common age for license holding, but has NOT actually acquired a license then make this clear to your insurer.
  • Parent's as legal guardian may ultimately be held responsible for the driving actions of their resident teen regardless of insurance scenario. What does this mean? It means teen parents need rock solid liability insurance.

 

Auto Insurance For Teenagers And Operator Status

How is the teen designated? Auto insurance for teenagers under a parent's policy is subject to an operator classification that affects cost. When you get auto insurance quotes for teenage drivers be clear on the following. Incorrect classification could lead to claim problems.

  • Occasional Operator: As an occasional operator your policy premium might increase 50-100% for example. Thus potentially doubling.
  • Primary Operator: If the teenager is designated as the principal driver or operator of one car on the parent's policy (e.g. you bought an additional car just for your teen or you will let the teen 'take over' an exiting car) then your premium could potentially increase between double and triple.

 

Auto Insurance For Teenagers And Driver Vehicle Assignment

insurance for teenagers Carriers differ in how they assign the newly licensed teen to the parent policy. If a 'new' car for the teenager is not to be added to the policy then your insurer may require that the teen is designated as a Primary Operator of one vehicle on the policy.

With auto insurance for teenage drivers some insurers may assign the teen to the most expensive of two or more vehicles, regardless of which the teen will mostly drive. The oldest and most inexpensive car covered by the policy is the cheapest proposition for teen vehicle assignment. Knowing what approach an insurer will take is important as this can affect auto insurance quotes for teenagers.

There are various and differing statistics about the premium cost affects of auto insurance for teens on a parent policy; suffice to say that auto insurance for teens is not cheap.

Auto Insurance For Teenagers And Liability

When you get auto insurance for teenagers under your policy as a parent then you need to make sure you have bomb-proof liability insurance in place. An example of what is by no means excessive:

  • Bodily Injury Liability: $250,000 per person and $500,000 per accident
  • Property Damage Liability: $100,000

 

Make sure to get quotes for at least two sets of liability insurance dollar limits, in order to test how much the difference in premium will be if you 'go higher'.

Auto Insurance For Teenagers Holding Their Own Policy

auto insurance for a teenager Licensed teens insuring their own car; auto insurance for teenagers that hold title to their own vehicle and will hold their own personal insurance policy. Like for like, this is a more expensive approach to coverage than the affects upon a parent's policy.

Because auto insurance for teenagers is relatively costly in general, a teen that wishes to insure them self directly needs to pull every technique in the book towards a cheaper premium. Auto insurance for teens with their own car:

1. Shop quotes and more quotes. The essential task for auto insurance for teens. Several hundred dollars or more are at stake. Failure to price test will cost you dearly.
2. Don't buy a car that requires collision and comprehensive coverage. If you have an auto loan or lease you must hold this expensive component to a policy. A car worth $2,000 or less might do without this optional coverage for physical damage since the potential payout after deductible does not warrant the premium cost.
3. If you must drive a car that needs collision and comprehensive then consider taking the highest deductible you can afford to risk forgoing as part of any claim.
4. Buy a car with more modern or the best safety features (made after 1995). Avoid most stolen models and anything with high horsepower.
5. Towing and labor, full glass, car rental reimbursement. These are optional coverages you can decline.
6. Pay the premium in full, if not take a quarterly plan. Avoid monthly payment plans; collect more free quotes until you find a quarterly plan that is affordable.
7. Make no claims.

There are no companies that specialize in auto insurance for teenagers. Which is the best company on price for you must be uncovered through quote shopping. Is the best source for a quote online? Not necessarily; the insurer chosen is more important than the source of quotes.

Discounts? While any discount helps lower a premium, it is the rating applied by the insurer in calculating teenage quotes that matters. Establish original core value by shopping quotes. The average cost of auto insurance for teenagers with their own policy can be well beaten when you find a low rate carrier here. Go compare quotes today.

Cheap Quotes For Teenagers

Online carrier listing. Cheap auto insurance for teenage drivers requires collecting as many free quotes as possible. Find the best auto insurance for teenagers today. Cheap is a relative word, but huge savings on auto insurance for teenagers can be made with the right choice of car insurer alone. While teen policyholders need to shop quotes, so must parents. The reality for parents is that a newly licensed teen driver impacts the parent's rating so much that this event must be seen as a catalyst for action. Parents need to begin shopping quotes with new carriers for what becomes the updated family insurance scenario. If you think that your existing insurer will do you well and fail to shop quotes for a new family policy you could be wasting a king's ransom. Consider this: quotes for a full coverage policy that does not involve any teenage driver can differ by a thousand dollars due to base rate variation. So when you factor in the affects of a teenager on a policy, the scope for annual premium price discrepancies among insurers can be enormous. It is thus possible to absorb the auto insurance teenager cost by switching the family policy to a carrier with a more favorable rating. For low cost auto insurance for teen drivers start here with a local carrier listing and get free quotes direct.











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