Auto insurance companies fix insurance premium rates for automobiles based on risk factors, impact on profitability, and market competitiveness. In fixing the rates, they consider all the different risk factors that impact their profitability. One such factor that plays a significant role is the probability of auto accidents.
As per statistics collected in the US, it has been found that teen drivers in the 16 to 19 years age group pose the highest risk of motor accidents in comparison with any other age group. Moreover, it has been found that teens are in the habit of racing cars and ignoring the use of safety belts. It has also been found that alcoholism, late night partying, and then driving the car causes teens to commit many post-midnight auto accidents.
Based on these risk considerations, the auto insurance premium nearly rises to double when you as a parent add your teen son as an occasional driver in your auto insurance policy.
In case you buy a separate automobile solely driven by your eligible teen son, the auto insurance premium for that automobile will be even much higher. If you are rich enough it is a different case, but even so your son’s safety is still paramount.
Therefore, it is always better in any case to use a qualified chauffeur to always drive his car. That way, even the automobile premium will be substantially lower. The only aspect you will face is that your son will crib that you don’t allow him to drive.
One way to surmount that issue is to put him as an addon occasional driver on your own car insurance policy. While that will take care of your son’s cribbing, his safety as well as that of other people will always result in a worrying crease on your brow.
It is important that you cover the risks to yourself in the form of financial outgo in the event of an auto accident. You can reduce the fiscal risk by going in for liability insurance in respect of the automobile. The recommended figure is 100/300/50. Those who can afford it can go in for an umbrella policy.
There are several other strategies for those policy holders who want to reduce the outgo on insurance premia. Training your son to follow safe driving practices is the most important strategy. You can even inculcate fiscal responsibility in your teen son by ensuring that he pays a part of the insurance premium on his own.
Some auto insurance companies conduct a quiz to be answered by your teen son in respect of safe automobile driving. If he gets at least a B grade, then you get a certain discount on the auto insurance premium. The better the grade, the lesser the premium you pay.
The best thing to do is to train your teen son or daughter in safe automobile driving. Secondly, you need to also ensure a modicum of control on the company he or she keeps.
As per statistics collected in the US, it has been found that teen drivers in the 16 to 19 years age group pose the highest risk of motor accidents in comparison with any other age group. Moreover, it has been found that teens are in the habit of racing cars and ignoring the use of safety belts. It has also been found that alcoholism, late night partying, and then driving the car causes teens to commit many post-midnight auto accidents.
Based on these risk considerations, the auto insurance premium nearly rises to double when you as a parent add your teen son as an occasional driver in your auto insurance policy.
In case you buy a separate automobile solely driven by your eligible teen son, the auto insurance premium for that automobile will be even much higher. If you are rich enough it is a different case, but even so your son’s safety is still paramount.
Therefore, it is always better in any case to use a qualified chauffeur to always drive his car. That way, even the automobile premium will be substantially lower. The only aspect you will face is that your son will crib that you don’t allow him to drive.
One way to surmount that issue is to put him as an addon occasional driver on your own car insurance policy. While that will take care of your son’s cribbing, his safety as well as that of other people will always result in a worrying crease on your brow.
It is important that you cover the risks to yourself in the form of financial outgo in the event of an auto accident. You can reduce the fiscal risk by going in for liability insurance in respect of the automobile. The recommended figure is 100/300/50. Those who can afford it can go in for an umbrella policy.
There are several other strategies for those policy holders who want to reduce the outgo on insurance premia. Training your son to follow safe driving practices is the most important strategy. You can even inculcate fiscal responsibility in your teen son by ensuring that he pays a part of the insurance premium on his own.
Some auto insurance companies conduct a quiz to be answered by your teen son in respect of safe automobile driving. If he gets at least a B grade, then you get a certain discount on the auto insurance premium. The better the grade, the lesser the premium you pay.
The best thing to do is to train your teen son or daughter in safe automobile driving. Secondly, you need to also ensure a modicum of control on the company he or she keeps.