Rates are typically higher for younger drivers because loss experience shows they have more accidents. Also, if they are a new driver, they have no driving history so insurance companies assume the worst. They assume the newly added driver will have more accidents than more established drivers. Once they have been driving for several years and can prove, via their clean record, they are a good driver, the rate will drop.
You should know some ways to save money on your insurance when you have added a youthful driver. Below are some tips for you to discuss with your agent:
Establish credit before they start driving as many insures rate partly based on credit. If your child has no credit whatsoever they will not receive any discount. This is a major discount that could change the rate tremendously.
Consider getting the child a vehicle that requires liability only. The premiums for full coverage can be very expensive for a young driver.
Ask your agent ahead of time what discounts are available. Good Student, Defensive Driving, Driver Training, away at school over 100 miles, etc.
If you plan ahead of time you might be able to make your insurance rates more affordable!
Josh Lewis
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