When a teen first receives their driver’s license, they may be considered a “high risk” driver right out of the gate. In fact, compared to their parents, teen student drivers are often in a different risk category and have different insurance needs altogether. There are a number of reasons for this, including the fact that teens are—by nature—less-experienced drivers with little to no established credit history. Sometimes parents can add their teen to their existing auto insurance policy, but this may not always be the best option. Although it may mean purchasing policies from separate carriers, high-risk car insurance companies often provide a more affordable and effective solution for teen drivers.
Finding the Right Auto Coverage for Teens
There are a number of factors that could impact a student driver’s auto insurance premium, including:
- Driving Record
- Vehicle Type
- Coverage Limits
- Annual Mileage
Because of this, it pays to shop around and compare rates from several carriers; each insurer calculates rates a little differently, and some factors could carry more weight than others. You should also find out which high-risk car insurance companies provide the coverage options you need. (For example, do you want to simply meet your state insurance minimums, or are you looking for additional coverage with options like roadside assistance?) Then, ask the company about discounts that could lower your premium even further. Some student discounts a teen driver could qualify for include:
- Good Student (for example, for maintaining a “B” average)
- Auto Safety Devices
- Anti-Theft Devices
- Low Annual Miles
In making your final decision, try to pick the car insurance company with the coverage and discounts that fit your specific needs. For example, Direct Auto offers options for customization, such as flexible payment plans that can be built around your payday and/or monthly budget. Having that kind of flexibility could help students better manage their monthly expenses and keep up with their premium. Find the company that provides you with the coverage you need and is most willing to work with you to make your insurance affordable.