Automobile insurance premiums vary for each type of person. Insurance companies perform risk management studies to determine the rate that will be charged to a policyholder.
The higher the risk the driver is likely to be involved in an accident, the higher the automobile insurance premium will be.
That is why teen drivers are likely to have a higher rate than other age brackets. Risk management studies by automobile insurance companies have already profiled teen drivers to be high risk. You can also visit this website https://everyblogy.com/ to get detailed information about automobiles.
According to studies, teen drivers are more likely to lose control of the car, commit errors behind the wheel, make poor decisions on the road, and drive at unsafe speeds compared to other age groups.
There are different factors that affect this conclusion. Some of which are:
- Age – According to the National Highway Traffic and Safety Administration or NHTSA, teen drivers account for about a third of all road accidents in the US. Insurance companies now use that fact to charge higher premiums on younger drivers
- Sex – According to studies, men are also more prone to accidents than women. Combined with age, a teenage boy will likely have to pay a higher rate than a teenage girl.
- Location – Studies also show that people who live in highly populated areas are also more prone to accidents. So a teen driver’s home will also factor in the rate of his automobile insurance.
- Type of car – The more expensive a car is, the higher the cost of getting it fixed. An expensive car is also more likely to be targeted by theft compared to less expensive cars.
Each automobile insurance company may use other factors to decide the premiums to be charged on each driver but the factors mentioned above are usually the most basic.
To decide whether the rates are fair or not, we could only speculate, insurance companies are a profit making company and conclusions they made will probably always be on their interest. Click here https://toptensbest.com/ to get latest updates and news about automobiles on auto industry.
However, there are some things parents and teen drivers can do to lower (at least a little) the car insurance rate and here are some tips:
- Get good grades – Auto insurance companies usually look at the whole profile and good grades usually reflect responsibility and decision-making skills. Some Insurance companies offer reduction depending on the teen driver’s GPA.
- Go to Traffic School – According to NHTSA studies, teen drivers are more likely to speed and be given a traffic ticket. Traffic tickets increase automobile insurance premiums. To keep a clean record, some judges give the option to attend traffic school; they should attend traffic school. Not only do they get a chance to keep their records clean, they might learn a few things about road safety as well.
- Choose a practical car – A 16-year old driving a corvette would only result in high premiums. You are combining the high risk of a young driver and the high risk of an expensive car. Choose the usual 4 door car that is safe to drive, fuel-efficient and has safety features.
Those are just some tips to keep teen driver’s premiums low. Parents should remember that even if they trust their children, youth gives them some feeling of invincibility and it can lead them to an accident.
If your teen child is involved in a road accident, be sure to consult with an attorney to help with your legal options. Go to this website https://nova-mag.net/ in order to acquire additional information about auto repairing maintenance and insurance as well.