San Francisco, CA (PRWEB) July 06, 2013
FinanceSpectrum.com financial advice column today released their observations regarding sky-high auto insurance policies for teenaged drivers, and doled out recommendations for parents to try to shave off some of the cost.
According to Kate Rogers in a July 1st Fox Business news report, new data from InsuranceQuotes.com recently revealed that it costs the average married couple 84% more when they add their teenaged driver to their insurance policy. The InsuranceQuotes.com figures showed that for the parents of females, their insurance premium will go up by 72% while the parents of male teenage drivers will pay 96% more for their car insurance. In the article, InsuranceQuotes.com’s senior insurance analyst Laura Adams explained that teens are the riskiest and most expensive drivers to cover, so for insurance providers to charge as much as they do for teens’ premiums makes perfect sense to them.
FinanceSpectrum.com understands the increased cost to insure younger drivers, but says that they don’t know of any other insurance with such dramatically different fees depending on age. FinanceSpectrum.com is quoted as saying, “Can you imagine if term life insurance for people over 60 was 72% more expensive than for people under 60? Or if homeowners’ insurance cost 14% more for male homeowners?” The Fox Business article, above, stated that automobile accident rates are 4% higher for teens than for older drivers and that car wrecks are the leading cause of death for American teenagers. These statistics weigh heavily on the way insurance companies price their premiums for teen-aged drivers.
FinanceSpectrum.com acknowledged that teens might be the riskiest of drivers to insure, but gave some guidance to parents—who are usually the ones footing the bill—to lower the costs wherever possible. FinanceSpectrum.com is quoted as saying, “Parents, take heart that other parents all over the country are experiencing these ghastly rates along with you. If that’s not comforting enough, you do have some options for reducing the cost to insure your teen-aged driver. For starters, the longer you wait to insure them, the cheaper it will be. Costs literally vary from a 16, to a 17, to an 18, to a 19-year-old driver. Now I’m not saying it will be easy to reason with your child about holding off driving for a year or so, but it might mean a lot more money in your pocket. Or perhaps offer to split the price of their insurance with them? There’s always the discount for students who get good grades—we’re talking a “B” average or higher—and extra discounts for taking a defensive driving course. And lastly, many parents don’t know about this, but tell your insurance when your kids go off to college. If their campus is more than 100 miles away from you, the parents, and they don’t bring a car you can get a killer rate on their premium while still having them covered for when they do come home to visit.”
The above-mentioned Fox Business article recommended that parents do as much shopping around for insurance rates as possible, and to compare policies side by side once per year to ensure the best rate from year to year. InsuranceQuote.com’s Adams is quoted as saying, “Communicate with agents about getting the lowest rate for your child’s age. Comparing policies apples-to-apples will really help you find the best rates for your location.”
FinanceSpectrum.com is an informative online finance magazine that dishes out advice, guidance, and recommendations to American consumers. The column is geared towards middle-class, middle-aged Americans, though the topics are broad and there is something for everyone to benefit from. Article topics include student loans, budgeting, credit, retirement planning, and much more.