Teenage Drivers: Accidents, Auto Insurance Costs & Discounts

Insurance is a business of pricing risk correctly. When there is a higher chance of claims there will be fewer companies offering reasonable premium quotes. Understanding this simple basic allows motorists to align themselves for lower rates. If a motorist is behaving irresponsibly, he/she must face the consequences. They usually come in the form of high premiums and most insurers become unwilling to take a chance with them.

In that sense, statistics show that young drivers are four times more likely to get involved in a fatal crash compared to over 25 year old drivers. This is the main reason behind why most companies like to stay away from insuring teenagers. And if they do they want an arm and a leg for premiums. Some companies are probably exaggerating this correlation when they quote for a new driver. But if they have enough good drivers in their books why should they bother taking on high risk at all. The answer is that some high risk auto insurance companies are better equipped to insure young and risky drivers.

This can be a real problem for sensible young people. This generalization will result in high average car insurance rates for teenagers even though they have not done anything. In fact, it is irrelevant that they are not personally responsible for such decisive statistical data because underwriting works on predictions. Until they have enough proof that they will be responsible behind the wheel most young people will be charged high rates.

How could they prove that they are more responsible than their age group? This may appear to be a tough question but many companies address this particular question. Hence there are several options available in this regard. One of them is to prove that they are putting their heads down and studying hard for their exams. Good grades are indication enough for some companies to offer lower rates to young people. If you are doing what it takes to be successful it is likely that you will do what it takes to be a safe driver.

Taking safe or advance driving courses is another good example of reducing risk. Many people argue that driving tests are not hard enough. They believe that tests should be made harder to reduce young deaths. They probably have a good point. A young person taking it on himself/herself to learn more and improve driving is in fact admirable. Even though it is mainly taken to improve driving it is a good thing for the companies to encourage them with lower premium offers.

Even when a young person cannot get immediate discounts they can achieve them within a year. After the first year without an accident most companies would be convinced to offer very good rate cuts to youngsters. With that thinking youngsters can look for a pay as you go policy or similar policies based on monitoring driving habits. Should they keep driving to minimum and to sensible hours they will not have to pay expensive premiums even in the first year. Then, they can look for more traditional policies since they would be eligible for no claim discounts.

The first year is highly important in driving. There is a high chance of involving in an accident in this year than any other year. Perhaps parents should pay extra attention to their children’s driving as well. It does not mean that they are safe because they passed their tests. It is best to keep a distant watch in their first year.

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