Smart Auto Insurance Blog

In many states teenagers can receive their drivers license at age 16 once they have passed a written test as well as a driving test.  At this point you will need to look into auto insurance for your new driver.  Many auto insurers such as Progressive and Acceptance Insurance offer policies to these young drivers, but rates may be higher and if you add the driver onto your existing policy you can expect to see your premium increase, in some cases relatively drastically.

You can see your auto insurance rates come down over the years with your teen on your policy by encouraging good grades which can earn discounts and demanding safe driving habits.  The Department of Motor Vehicles in various states offer teen driving education from everything like passing the written test to the importance of never drinking and driving.  There are online tools for your Internet savvy teen to browse articles and online quizzes to help educate your child on safety guidelines on the road.

Many auto insurance companies also offer online programs for teens.  USAA Auto Insurance explains to your student how to buy a car as well as how to handle distractions while driving.  State Farm has launched a unique campaign called “Not Now, I’m Driving” (NNID) which has teen-friendly YouTube videos and messages from famous actors sending the message about the importance of never texting while driving.  Allstate and Geico also have programs geared towards making your teen a safer driver which will hopefully save lives and as a nice perk, hopefully facilitate lower auto insurance rates for you over time.

Encompass Car Insurance has a great online resource for those customers with teenagers on their policies.  With teen drivers having an alarming high rate of fatal accidents it’s no wonder they are treated differently.  Just because your teen has been allowed to carry a driver’s license, it does not mean they are as safe as an experienced driver.

There are many things you can do to help prepare yourself and your teen for the challenging road ahead.  You will most likely see your auto insurance rates increase in addition to your anxiety of sending your inexperienced driver out on the road.  Encompass has gathered a  convenient resource on their website to better prepare yourself.

• Some of the topics covered include:
• Teenagers and safe cars
• Tips on helping teens drive better
• Setting guidelines for your teen
• Understanding graduated licensing
• Developing a Parent-Teen contract

When you create boundaries and allow for more time behind the wheel your teen will be better prepared for challenging driving situations and hopefully save lives.

According to the article “Keep Your Teen’s Car Insurance Rate Low” by Beatrice E. Garcia on The Chicago Tribune’s site, car crashes are the number one cause of death among teens in the US.  The fatality rates for teens between 16 and 19 years is 4 times more than those 25-69 years of age.  Based on this staggering statistic it makes sense that car insurance quotes for teen drivers are much higher.

There are some discounts available to teens that are important to be aware of.  Many car insurance companies offer good student discounts to teens with a B average or higher.  There are also discounts given to those with perfect driving records, which includes no moving violations or at-fault accidents for 3 or more years.

There are education courses available for teens and their parents which can make discounts available as well.  Some insurance companies offer discounts up to 25% off the original quote which can mean huge savings.  It’s definitely worth getting educated and understanding what kind of benefits your car insurance company offers your teens.

As to be expected, auto insurance rates are very high for teenage drivers because they are riskier since they are new and in the learning process of driving.  The article “A Crash Course On Auto Insurance” by Diane Giles on kenoshawnews.com points out that adding a teen to an auto insurance policy can double the yearly premium. 

Director of Insurance for the Consumer Federation of America, Robert Hunter, says that data on teen deaths and accidents is very bad.  It’s especially bad for young, male drivers and that is directly related to their auto insurance rates.  Auto insurance companies use this data to determine who is most likely to file a claim.  Car crashes are the number one cause of death among teens in the US.  A driver age 16-19 is 4 times more likely to have a fatal car crash compared to a driver age 25-69.  That is astonishing and extremely concerning. 

Experts agree that it is crucial for parents to get involved and educate their kids on driving safely.  Not only drugs and alcohol are distracting kids.  It’s also talking on the phone, texting, and loud and rambunctious passengers.  By having your teen contribute to their auto insurance bill it can encourage them to drive safely.  They need to understand the direct correlation between a clean driving record and the cost of auto insurance.

According to the article “Car Insurance Providers Lower Rates for Back to School” by Trey Augusta on huliq.com, auto insurance companies are in price wars as they compete to win student auto insurance policies.

As high school and college students get ready to head back to school, parents are reviewing their auto insurance policies.  This is causing many auto insurance companies to lower their rates to win the business of these students.  Auto insurance rates are revised daily and with all of the variables that go into determining an auto insurance quote a new school year often brings changes to a particular auto insurance policy price. 

Shop around to see if your student is eligible for a cheaper auto insurance.  It may surprise you that your older, more experienced, good student driver qualifies for a better rate.

Car crashes are the #1 killer of our nation’s teens. Through education, teens can learn how to be safer and prevent devastating accidents.

It’s crucial to talk about road safety with your teen as well as establish rules and consequences you can agree on. Discuss when, where, how and with whom your teen is allowed to drive. Limit the number of passengers in the car and enforce a curfew. Insist that all passengers wear seat belts and encourage your teen to call for a ride home if any alcohol or drugs are involved.

Ensure your teen understands the enormous responsibility that comes with having their license. With the proper information and rules, lives may be saved. When it has been determined that your teen is a safe driver and you have to add them to your auto insurance policy, be sure to shop around for the best price.