Michael Tillman

Real people. Real answers. Real quick.®

 
 
Michael Tillman
918-251-9222
Broken Arrow, OK
 
Sunday, March 21, 2010

Keeping Auto Insurance Premiums Down For Teens

Parents and young drivers frequently ask their financial representative two questions:  “Why are the rates for teen drivers higher?” and “How can I pay less for insurance?"

Why are the rates for teen drivers higher?

Teens generally have more frequent and more expensive auto insurance claims than any other age group, which is why they pay higher rates for auto insurance. According to the Insurance Information Institute, adding a child to your policy can cause your auto insurance to go up anywhere from 50% to 100%.  To make rates fair for everyone, insurance companies charge higher rates to groups that average more claims and lower rates to those with fewer claims.  However, there are many ways in which a parent or young driver can pay less for insurance.

How can I pay less for insurance?

Develop a good driving record

  1. Follow traffic signs
  2. Drive defensively
  3. Avoid traffic citations 
    • Consequence of a record of citations
      • Higher insurance premiums 
      • Possibility the teen can only be insured in a company that insures substandard drivers.

Earn good grades

We offer Good Student and College Graduate Discounts.

  • Discount could be as much as 25%
  • Good Student is applicable to those in high school or college with a B or better average grade point average (GPA) 
  • The College Graduate Discount is applicable to college graduates regardless of their GPA

Parents can help

  • Establish rules about where teens can drive and who is allowed in the car.  Ensure the rules are understood before teens earn their license.
  • Limit the number of passengers a young driver can have in the car.  Teen passengers may distract young drivers and encourage them to take risks they normally wouldn’t.
  • Restrict driving at night.  Driving at night doesn’t require more skill, but teens driving at night are generally doing so for recreation.  According to the Insurance Institute for Highway Safety (IIHS), more than half of teenagers’ fatal crashes occur at night, especially weekend nights.
  • Set a good example for the teen driver.  Wear seat belts, obey traffic laws, and be courteous to others on the road.
  • Know your teen’s driving skill level.  Don’t force young drivers to drive in traffic or other situations for which they aren’t ready.
  • Don't talk on the phone while driving.
  • Be patient and remain calm.  Raising your voice or grabbing the steering wheel may seem necessary, but will only agitate the driver.
  • Stress the importance of remaining focused while driving.  According to the National Highway Traffic Safety Administration, people driving with distractions cause more than 1.2 million crashes every year in the U.S.

To raise awareness about teen driving safety, we have a free DVD called "Young drivers: The High-Risk Years." This 16-minute DVD, produced by the Insurance Institute for Highway Safety, will help clients and their teens understand the importance of safe driving.

To request a free copy of this DVD, stop by my office.

Guidance from a trained professional will help you find solutions to protect the things are most important to you and your family. Contact me to review your unique situation.

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Policies issued by COUNTRY Mutual Insurance Company®, COUNTRY Preferred Insurance Company® and COUNTRY Casualty Insurance Company®, Bloomington, IL. Coverage not available in all states. Read our full disclaimer.