Buying auto insurance for young drivers is an expensive proposition for any parent or guardian and if a teen already has a poor driving record, it becomes even more pricey. There are options available to try to keep coverage costs down, though.
A parent can shop around and consider changing insurance providers to get a better price, have the teen driver in enroll in an approved drivers education program, or exclude the teen driver from his or her insurance policy. Consider the available options before making a decision about how to arrange coverage for a young person in this situation.
Auto Insurance Rates for Teen Drivers
Auto insurance rates for teens are high because young people who have recently been licensed are more likely to be involved in accidents than drivers who have been licensed for some time. Teens and young adults are also more likely to engage in risky behaviors, which also increases the likelihood of the insurance company having to pay out on claims for damages caused by drivers in this age group.
Change Auto Insurance Providers
One option available to the parent of a teen driver who has already established a poor driving record is to change insurance companies. Since each one sets rates independently, it maybe possible to get a lower rate from a different provider.
The insurance company will ask a number of questions before providing a quote for coverage. Along with gathering basic information about the make and model of the vehicle, how long the primary driver has been licensed, and where he or she lives, the insurer will ask about the driving record of all licensed drivers in the household – including the teen.
It is not a good idea to try to hide this information from the insurance company. It will pull the driving records of all drivers in the household as a matter of course before issuing a policy. If the company discovers that the driver was less than truthful on the application, it may cancel the coverage.
Enroll in a Driver’s Education Program
Some auto insurance providers offer preferred rates to drivers who have completed an approved driver’s education program. Learning from a trained instructor can help the young driver learn how to operate a vehicle safely and correct any habits which have contributed to causing accidents or accumulating moving violations.
Another benefit to taking a driver’s education course is that it may help a teen driver qualify for a better rate on his or her coverage. Some companies offer a discount in this instance, and it’s a good idea to ask whether the ones under consideration will provide this type of price break to policyholders.
Exclude the Teen Driver from Coverage
If the cost of including the teen driver on a parent’s auto insurance policy is too high, the parent can choose to exclude him or her from the policy. In this situation, the teen is not named on the policy as even an occasional driver and has no coverage if he or she operates the vehicle. This may be considered an extreme solution, but one which can be used to keep costs down when a teen has a poor driving record.