Explaining Car Insurance Policies to Teen-age Drivers

You have always dreamed of having a car and now that you're a teenager, that dream has come true. But you cannot step on the gas just yet. You have to remember that you will be held responsible for whatever loss or damage you and your vehicle will incur when you drive. Without insurance, you would be held personally and financially liable for any and all accidents and related damage. Not a pretty picture. However, the law requires you to own an insurance policy.

Insurance policy costs

As a teenager, your insurance policy can be substantially more expensive and complex compared to your parents. This is because teenagers are considered by insurance companies to be riskier. Drivers aged 16 to 19 are four times more likely to meet an accident than any other age group. Also, the insurance cost of male teenagers is more expensive than female teens. Statistics show that male teenagers are one-and-a-half times more likely to engage in accidents than their female counterparts.

Discounts

As a teenage driver, however, you should not feel discouraged. There are many ways to get discounts from insurance companies. One of which is undergoing advanced driver's training. You will get a certificate once you finish this driving course. You can present this to the insurance company and chip off as high as 15% from your insurance purchase. You can also expect more discounts if you have good academic records. In some cases, A grade point average that's quite high can help you save a little. You can get discounts by participating actively in organizations because teenagers who engage in community organizations are considered responsible by some insurance companies.

Lastly, your cars make and model will matter in your insurance cost. Generally speaking, the 'hotter' the car, the 'hotter' the insurance will be.