Car insurance rates are based on age and driving experience as well as driving record. The best way for teenage drivers to work their way into better rates is stay on their parents policy in order to gain driving experience and a driving record. There is a good chance that after three years and a clean driving record that a preferred policy from the parent’s insurance company can then be issued on the teen drivers that want to have their own car and pay for their own insurance. There are numerous discounts for the young driver today. Some companies give discounts for good students that carry a 3.0 grade point average in high school or college.
Vehicles Make a Difference – The younger the driver the higher the rate. The rates are very high for young drivers on newer vehicles that require full coverage. Older vehicles that only require PL/PD coverage as a minimum state requirement is one way to cut costs for the teen driver.
Remember the sportier and newer the vehicle, the higher the insurance is going to be for an inexperienced teen driver!