Young persons are considered high risk by auto insurance companies for reasons such as their age, driving experience and lifestyle. This is why young persons’ auto insurance premium rates are high. The high risk factor is based on the statistics they collect about the incidence of accidents and the people involved in them. Lack of experience and no driving track record to go by, insurance companies put a tag of high risk on young drivers and rightly so. Since there is a prospect of good business with high premiums with this group of young drivers, some insurance companies even specialize in providing auto insurance to young persons. These insurance companies look for ways to offer customized car insurance with added benefits to the young drivers which is a potential segment to make good money.
To make the normally high rate car insurance for young drivers attractive, insurance companies try to consider some factors based on which they can reduce the cost of these policies. For example, they can get reduced premiums of every claim-free year of their driving. Some insurers offer discounts for taking advanced driving tests making them safe drivers thereby reducing their risk. It is a good idea to look for such insurance companies who offer such discounts so that the overall cost of auto insurance for young drivers is much lower.
When you include young drivers to your auto insurance policy, making them bear a portion of the cost would make them feel responsible when getting behind the wheel. Making them bear the cost of maintenance of the vehicle and also gas will be helpful to get involved in driving responsibility. If they are made to feel the pinch on their pockets they would be more careful not to take unnecessary risks on the road. Statistics prove that young drivers who contribute to their vehicles financially are less prone to accidents than those who treat the car as a speeding toy to play with and are potential high risks on the road.
To bring down the auto insurance cost of young drivers, there are a few ideas to consider. In the beginning they can be made to drive cars that are safe and inexpensive. Fast cars and high performance cars can wait. The same thing goes for making modifications or customization to the car. Have a standard vehicle and you do not have to make false claims when something untoward happens on the road, leaving you with a cancelled insurance. Cars parked in proper garages and those fitted with safety devices and anti theft devices will be considered less risk. By taking these precautions that do not cost much, you can make sure that you get a cheaper auto insurance. Discounts are available for being good students with high scores. Before getting a drivers license you should attend defensive driving course to handle dangerous situations like hydroplaning through water, braking and having good control of your vehicle in icy conditions. So prove your responsibility by driving safely without getting tickets or accidents on your driving records. Eating, talking over the mobile phone or doing other things while driving should be avoided. Stick to speed limits and prove to be good driver. These steps will certainly help not to make the car insurance of parents ridiculously high as the rate of the car insurance of parents is fixed at a higher rate when young persons are added to the policy.