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Young driver insurance, sometimes known as teen or teenage driver insurance, provides insurance protection for young drivers. Many insurance companies regard young drivers as a significant risk and may raise their premiums accordingly. Automobile insurance companies may also reduce the premiums on young driver insurance if the young person in question meets certain criteria. The additional costs involved with ensuring a teenage driver are reflected in both stand-alone young driver insurance policies as well as household policies that cover one or more young drivers in the family.
Insurance premiums and coverage is in part determined by the level of risk attached to the insured. Unfortunately, young and inexperienced drivers may get into accidents as a result of carelessness, immaturity, or in some cases being under the influence of drugs and alcohol. Parents who seek to ensure their underage children as drivers may find that their automobile insurance premiums skyrocket. In some cases, parents can reduce these premiums somewhat by insuring their teenagers only on less expensive household cars or by raising their deductible. It may be worth it for parents to shop around for young driver insurance to see if they can find a better deal than what they're currently paying.
Some insurance companies provide special incentives to young driver insurance customers that encourage various types of responsible behavior by offering premium reductions. For example, young drivers who maintain high grades in school may be entitled to a significant discount on their premiums. This program usually requires that the young driver regularly submit his report card or term grades to the insurance company for review. The justification for this young driver insurance discount is that students with better grades may be less inclined to engage in risky driving behavior now and in the future.
Another way for teen drivers to reduce the premiums they pay on car insurance is to complete a driver's education course. In some places, driver's education is not a required course in school, but it may be offered for those who wish to take it. Some insurance companies will reduce the premiums on young driver insurance if the student can show proof that she has completed a comprehensive course in driving and the rules of the road. While some experts believe that extensive experience behind the wheel of a car is more effective in preventing accidents than classroom education, insurers continue to reward those who have completed a classroom program.