Car insurance for teenage drivers is usually an expensive affair that many parents tend to lose sleep over. It is important to look for ways to lower the premium since insurance companies consider teenagers high risk customers when it comes to auto insurance. Some providers insist that teenagers attend driving workshops to keep them safe on the road. Adding your teenage driver to the family auto insurance policy is what many parents tend do. However, it is important to understand the factors that affect car insurance for teenagers and look for ways to reduce premiums. For teenagers, a driving license spells more freedom and even more fun, while for the parents it is a matter of more expenses on insurance and sleepless nights.

Among the major factors that insurance companies consider when determining the premium for a teenage driver are the type of car and the purpose that the car is used for. It is important to understand from the viewpoint of the insurance company drivers below 25 are considered high risk and four times more likely to be involved in an accident, according to statistics from the National Highway Traffic Safety Administration. Adding a teenager to the parent’s insurance policy can often raise premiums by as much as 50 to 80 percent.

For affordable car insurance options for your teenager, the first thing to do is a bit of comparison shopping. Comparing rates will help you make an informed decision. As a parent, you may want to search for a separate policy for your teen. However, if you have a good claims record it would be prudent to include your teenager to your policy. Just make sure to ask for liberal discounts for being a loyal customer. Alternatively, those who drive less expensive cars may find it cheaper to opt for a separate car insurance policy for their teenager. Drivers who marry before the age of 25 may be considered for a lower premium by the insurance company.

One way to save money on car insurance for a teenager is to avoid new and expensive cars including sports cars. This will only increase your insurance rates. Teaching your teenager to be a responsible driver will go a long way in keep insurance rates low. Any accident involving your teenage driver could send your car insurance premium through the roof. Better grades at school could fetch you a better rate from insurance providers. In addition, many companies offer good-student discounts which could lower premiums by 5 to 10 percent. It would be wise to enroll in a driver’s education course and safe driver programs to find favor with the insurance company.