May 12, 2020

Teens Car Insurance : Protecting Those Most Precious To You

Insurance January 27, 2020 posted by

The Importance Of Car Insurance For Teens

Teen drivers take to the roads with a sense of freedom and independence. Though driving brings several benefits for teenagers, the immaturity of these drivers puts them at great risk to dangers of the road. Driving requires full attention and seriousness, which teens do not seem to exhibit at all times, as result there are more crashes by 16year olds than any other age. In fact, it was estimated that 33% of all deaths between 13 and 19-year olds were caused by car crashes alone. This makes car insurance for teens a crucial yet expensive necessity.

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Two words “teenage drivers” brings fear in the mind of parents all across the world. When kids are of driving age, they follow their seniors and peers by wanting to drive a car of their own. This culture promotes increased numbers of teen drivers every year, which is continuously on the rise. The added cost of insuring a teen driver leaves parents in a dilemma, of whether to include teens in their existing insurance policy. It is estimated that some insurances can cost an additional $1000 every year when teen drivers are included in their policies. The reason for this high costs is because of the way companies tend to calculate premiums, by which the larger the risk the larger the premium it tends to attracts.

Since the recklessness of teens is apparent, driving becomes a matter of life and death for them. As parents, choosing the right insurance will not only save on your finances, but also make the road safer for your child. Hence choosing a policy, which is practical as well as light on your pocket, becomes necessary.

How To Choose The Right Teen Car Insurance

  • Pick the right car: The first need to do is pick the right car to insure, by which you should choose a cheap car like a hatchback instead of a luxury SUV. Choosing a cheap car will lower the annual premium significantly, as well as make commuting safe for your teen. Safe because cheaper cars tend to be much slower, reducing the chance of speeding or racing on the road.
  • Avoid car modifications: Fancy body kits and alloy wheels, may look good however they serve no other purpose other than aesthetics. Instead, they are expensive and increase the overall premium of the car insurance. Hence, give advice to your teen regarding the matter and persuade him/her not to modify his/her car, while also saving on insurance costs.
  • Choose a suitable payment plan: Car insurance premiums can be paid on a yearly and monthly basis. Teens are tempted by the fact that they can avail monthly payments, which according to them seem to be cheaper instead of paying a wholesome once every year. However, this is a common misconception by teenagers, because these monthly payments attract monthly interest. When premiums are paid on a yearly basis this interest is not attracted, as a result the overall cost is much lower.
  • Choose the appropriate cover: The next to consider is choosing the appropriate level of cover for your teenager. If you to save on cost then third party insurance is a suitable choice, however it does not cover all the aspects of comprehensive insurance. In fact, in some cases comprehensive insurance may actually end up costing less than when you add up the cost of third party, theft and fire premiums. Make a wise decision and choose quality over cost effectiveness, as it could prove cheaper in the long term.
  • Apart from the teen driver, adding the name of an elder more experience driver will reduce the cost of the premium by lowering the assessable risks. However, the tendency of ‘fronting’ should be avoided at all cost. The act of ‘fronting’ in which the parent’s names are listed within the policy while the teen does the actual driving instead, is illegal and can result in the claims being rejected.

Recent Trends Affecting Teen Driving

This era of communication has enabled people of all ages to be connected to a global telecommunications network. At first, the cell phones become the ‘hip’ item for all teenagers to have. This meant they kept talking and texting all the time, which continued while driving, resulting in many accidents. Even nowadays more than 56% of all teens involved in a car accident admitted to have been talking over the phone while the accident occurred.

We all know about the marvel of social networking, the global platform where people socialize, raise opinions and voice concerns. Social media like Twitter and Facebook have got many teens hooked to their mobile devices like laptops, tablets and smart phones. This level of usage amongst teens has increased considerably in the past few years, almost to a level of it becoming an addiction. This addictive lifestyle towards social media means that more teens are using their devices while driving. Since we humans are not true multitasking machines, it is almost impossible for us person to engage in more than one activity at a time. Hence, when driving and mobiles devices are mixed, a recipe for disaster is in on the cards.

Related Article: Key Reasons Why We All Need Auto Insurance

Future Scope

Teen driving is the leading cause of death amongst teens, killing about 2020 young boys and girls in the United States annually. There are several factors, which contribute to increasing the dangers of teen driving like the inability to recognize dangerous situations, reacting appropriately, speeding, drinking under influence of drugs/alcohol, and fewer seatbelt usages. These tendencies are rooted within the mindset of teens, and do not seem to be changing anytime soon. However, it is part the responsibility of the teen and parent alike to ensure that safe driving is always abided.

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Parents can enroll their students in driving schools, which offer additional certification to make them safer on the road. Installation of safety devices like anti-theft alarms, anti-lock brakes and engine immobilizers in cars will severely reduce the risk of damage. Attending driving awareness campaigns can help to show teens the dangers of reckless driving to promote a sense of responsibility in them.

These steps if followed can help make the roads safer not only for your child but also for others who commute.

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