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Every parent dreads the moment their teen starts driving. Not only does it mean enduring the arduous process of teaching the young driver, but it also means extreme financial pain in the form of high auto insurance premiums. Yes, the rumours are true. Car insurance for teen drivers is outrageously expensive, but absolutely needed. Why is it so expensive and how can you save some money? This article should offer some answers.

Let's cover the expense first. Insurance companies price premiums based on the perceived risk of the insured party. In the case of a teenager who has just started to drive, this risk is unfortunately quite high. The much higher cost of the policy reflects this much higher risk (something to think about when training your young driver!). Young men typically have higher premiums than women do, simply because of the higher risk involved. It's just as simple as that.

Understanding this, we can take a look at some money savings strategies. As you might expect, these are all centered around reducing the perception of risk to the insurance company. One of the best ways of doing this is make sure your teen is driving a non-risky car. Think old minivan rather than Corvette. Sports car premiums for a teenager are so high as to be completely ludicrous. Remembering that this high premium also reflects the risk to your teen, and the wisdom of getting an older, safer car becomes quickly apparent. This is perhaps the best way to save.
Another proven method of reducing costs is to try for the "good student" discount. With proof of adequate grades, your teen can get lower premiums. This is because better grades are viewed as belonging to a more responsible, safer individual. This is determined on a broad, statistical basis. Take advantage of this if you can, and save money every month on your teen car insurance costs.

Here's one you will certainly want to do: most companies will give discounts for drivers who have complete a driver's education class. Not only is this a good way to save money, it is also an excellent investment in the safety of your young driver, which can't be priced. Don't skimp on this, or you may regret it in many ways in the future. If nothing else, the discount will help the class pay for itself.

So, that gives you a few straightforward tips to help you trim some costs on your insurance. Be sure to ask around to get the best rate. Best of luck as your teen begins their journey onto the wide open road!

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