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4 Things Your Teenager Should Know about Car Insurance

Your son or daughter is quickly approaching driving age, and all they want to talk about is getting their license and their own car. Sound familiar? If so, it’s about time they learn about car insurance.

Of course, they probably could care less about car insurance. After all, most driving adults don’t even understand how their rates are calculated. However, even a little knowledge can help your teenager drive safer, learn some responsibility, and yes, even save you a few dollars on your monthly bill.

That’s why we’ve compiled this list of four very important things that every teenager should know about car insurance.

  1. Avoiding Distractions Is Key to Safe Driving and Lower Car Insurance Rates

How many times have we heard in the news that a group of teenagers was killed or seriously hurt in a car accident, only to then find out that the driver of the car was texting or using their cell phone?

Studies have shown that cell phone use while driving is even more dangerous than drinking and driving. That one split-second it takes to send a text message could very well cause the driver to drift into oncoming traffic and cause a potentially fatal accident.

While it is easier for a teenage driver to recognize and be alarmed by the most devastating occurrences, the truth is that the majority will likely be involved in the smaller, non-life threatening accidents. What they don’t realize, though, is that the not-so-shocking fender-benders can also have a pretty significant impact. You know – those accidents that could’ve been avoided if the driver sending a quick text message on their phone.

Even minor accidents caused by a distracted driver can have major implications on one’s car insurance. An accident of any size can send your teenage driver’s already high insurance rates through the roof.

That’s why it’s so incredibly important to make sure you teenager knows the impact that a distraction like a cell phone can have on car insurance rates. You don’t want to pay the extra money each month, and they sure don’t either. With that knowledge in hand, they’ll avoid distractions and be a safer driver.

The distractions don’t just start and end with cell phones, though they are, perhaps, the most prevalent. Other common distractions include:

  • Stereos (loud music in particular)

  • Friends riding as passengers

  • Eating and drinking

  • GPS and DVD systems

Keep in mind that you must serve as a role model to your teenage driver. Recent studies have shown that adults are more likely than teenagers to use their phones while driving. If they see you doing it, there’s a good chance that they’re going to do it too, regardless of the impact it has on their car insurance.

  1. Traffic Laws Are There for a Reason

With their insurance rates already sky high, teenage drivers need to do everything they can to avoid sending those rates even higher. Aside from accidents, the other major cause for car insurance rates for teenagers to soar is traffic law violations.

Before your teenage driver ever sits behind the wheel, they should understand what getting a speeding ticket or moving violation could do to their insurance rates. While the initial fine is costly enough, the accompanying points on their license will cost him or her hundreds, if not thousands of dollars in added insurance costs.

By educating your teenage driver what a speeding ticket could entail on their monthly car insurance bill, they’ll likely be more inclined to stay within the speed limit to avoid a ticket at all costs. They’ll then avoid an increase in their car insurance, and may even save money by qualifying for a safe driver discount in the near future.

  1. The Car They Want Isn’t The Car They Should Drive

Let’s be honest. Every teenager wants a fancy, new car. Just because they wantTeen Driver with Lower Car Insurance it, however, does not mean they should get it. While that new sports car might attract the attention of their peers, it also catches the attention of their car insurance provider.

Auto insurance companies know that the flashier the car, the more likely it is to be stolen. Furthermore, the faster the car, the more likely it is to be involved in a car accident, or for the driver to be ticketed for speeding. For the inexperienced teenage driver, the likelihood of any of the above to take place is tenfold.

It’s for that reason that newer, sportier cars tend to cause a great deal more for a teenage driver to insure. While more boring, safer and reliable cars may not be a hit among their school peers, they will be far more affordable to insure. Driving the more boring, safer car is also more likely to keep your teenage driver out harm’s way.

  1. Education Can Pay Off

Your teenage son or daughter probably hears it every day in school and at home: good grades will help him or her get into a nice college and help them get a high-paying job in the future. For most students, those words go in one ear and out the other. Sure, they understand the idea of more money, but if it’s not in their hands right now, then than words aren’t going to motivate them one way or another.

Fortunately, most car insurance companies offer an incentive to do well that involves the money that your son or daughter has in their wallet right now. Most auto insurance providers offer a good student discount. Teenage drivers that do well in school and have the grades to show it can qualify for as much as a 10% discount on their monthly bill.

With the most basic policies costing $125/month, that could equate to your teenage son or daughter having an extra $100+ dollars/year in their wallet or bank account. That is something that he or she can relate to, and could help push them to study harder or perform better in the classroom!

Greg Fowler

Greg Fowler

Managing Member of AutoInsureSavings LLC, Greg has been in the insurance industry for 12 years and enjoys rebuilding vehicles. His goal is to help drivers save on anything related to automobiles. Travel and enjoying the outdoors are some of his hobbies. The best way to reach him is at his Twitter or Facebook Profile.

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