Teens Must Have Auto Insurance

The cost of auto insurance for teens is much higher than for adults because insurance providers consider them to be at a high risk due to their lack of driving insurance.

There are a few things you can do to help reduce the rates you pay for your teen drivers. First you need to stress to them how important it is for them to keep a clean driving record. Simply put, this means no traffic violations, no speeding tickets, and driving safely with no accidents. After some time passes, they will be rewarded with lower premiums for safe driving. You can also reduce their rates by purchasing insurance with a higher deductible, because the higher the deductible is the lower the premium is.


If you are going to be purchasing a vehicle for your teen, choose a vehicle that is built well with extra safety features. Check the class the vehicle you have chosen, make sure to not choose one that falls into a sports class or higher risk class rating.

In some provinces of Canada and in most states of the USA, the graduated licensing laws have come into effect. The rules will vary from one location to another, but the basic underlying philosophy is to restrict new drivers by limiting what their license will allow them to do. On a first time driving license, even when it is a full driving license like a class 5, there will be a letter designation that indicates this driver is a new one. Most of the new drivers will have restrictions placed on their licenses, like nighttime driving restrictions, a 0 alcohol tolerance restriction and vehicle occupant restrictions. In order to remove their name from the new drivers list, they must take an additional test after a certain period of time.

You still may not be sure about where to obtain the car insurance for your teenage driver, but there are a some ways. A stand alone policy is one way the teenage driver can reduce the cost of their insurance; by purchasing such a policy through an agency that specializes in teenage auto insurance they can possibly save a good deal of money. The teenager who has a stand alone policy is carring his own insurance and is not an additional driver on his parents auto policy.

The risk for insuring teens can be lowered by these insurance companies by placing certain concessions on the driving habits of the insured teen. Some concessions may include no driving after dark, attending driving school and various other requirements which allow the companies to keep the premiums lower for the teenage drivers.

You can easily understand why insurance companies are hesitant to insure teen drivers at lower rates; a 16 year old driver is 10 times more at risk to be involved in an accident than an adult who is 30 to 59 years old. When it is time to shop for auto insurance coverage for your teenager it would serve you to remind them of this important fact.

By: Alisdair Cosgrove

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Alisdair Cosgrove interests include insurance and other personal finance topics and has been writing for numerous years and can find more of his work at the insurance site www.Peppercoin.com, offering cheap auto insurance and also great tips on gap insurance. Visit today to read more of Alisdair's great articles.