Everything You Need to Know About Teenager Insurance

Teenagers pay the highest insurance rates everywhere in the world. It is a fact that can be corroborated by the available stats and even insurance companies themselves. The purpose of this article is to discuss the reasons for the higher insurance rates and how you can reduce them. Let us start.

Reasons Teenagers Pay More for Insurance

There are several reasons teenagers pay the highest insurance, which we will discuss below:

• Most of the discounts are available for adult drivers. For example, No Claims Discount is available to car owners who have made little to no claims in the preceding years. As teenagers have only started driving, they are not eligible for such discounts. There are several other discounts, including occupational and homeowner. Again, they are available for adults only. Without the discounts, teenagers end up paying more than adult drivers.
• Teenagers are single. There is ample evidence to support that married people tend to drive safer and file fewer claims. Being a single driver, a person is more open to taking a risk. To offset this risk, insurance companies in UAE and other countries increase the insurance premium.
• One of the reasons behind fatal car accidents involving teenagers is not wearing a seatbelt. It is a statistic that is common to nearly every country worldwide. The failure to wear seatbelts is another example of reckless behaviour. Due to it, car insurance companies increase the premium.
• The fourth reason for higher insurance rates is the lack of driving experience. As teenagers have only started their driving career, they are more prone to making mistakes.
• Teenagers are more likely to use their mobile phones and other gadgets while driving. These distractions are a primary cause of automobile accidents worldwide. As insurance companies have no control over the driver’s behaviour, they reduce their risk by increasing the premium.

These are the most common reasons teenagers have to pay more insurance than any other age group. Now, let us move to the next section.

What Can Be Done?

There is a lot that can be done to reduce the insurance premium. Usually, it is the parents that help their child to buy their first car. After all, a teenager cannot be reasonably expected to buy a car fully on their own. Therefore, parents must buy their child an old car. It might sound absurd, but as you will see, it is quite logical.

Reasons for Buying an Old Car

There is no point in buying a new car for your child, given that they have little driving experience. Instead, we recommend that you buy them an old car that has a good safety record. The insurance rates for older cars are lower than the new ones. Hence, you can reduce the insurance premium.

Generally, older cars have low repair costs. 9 times out of 10, you can easily cover the repair costs. If the accident is too severe, you can scrap the car altogether without suffering any significant financial loss. As the repair costs are low, you can avoid taking out comprehensive car insurance. Instead, just get third-party car insurance, which is cheaper and gets the job done.

We are confident that you now agree with our suggestion of buying an older car for your child. If you are a teenager and plan to buy a car all by yourself, we still recommend buying an older car. You can always switch to a new car when you get older and more experienced.

Professional Driving Courses

Another way of reducing the insurance premium for teenagers is by enrolling them in a professional driving course. There are countless driving schools in UAE. A certificate from any of the reputable ones can help reduce the insurance premium. The certificate shows that the teenager is a responsible car driver.

Driving Device

Several insurance companies ask for permission to install a device in the car that monitors your speed and other driving habits. We recommend that you allow the device on your teenager’s car as it can help reduce the premium. The purpose of the device is only to monitor the driving habits and nothing else. In other words, they pose no privacy risk.

Full Payment

Numerous car insurance companies offer a discount if you pay the insurance amount in full instead of instalments. All you need to do is find the ones that offer this discount and pay in full. Even if you pay in 3 or 4 instalments, you might still be able to get a discount.

Comparison Shopping

We have stressed comparing quotes from different insurance companies multiple times in our blog posts. When looking for car insurance for your teenager, shop around. In other words, contact multiple insurance companies for a quote and bargain as much as possible. In the end, buy the one that offers the lowest rate.

Safe Driving Lessons

As a parent, there is a lot that you can do for your teenager. One of such things is teaching them how to drive safely. As new drivers, teenagers often drive aggressively. Therefore, we request you to teach them safe driving. We have already talked about it in detail before. Here is the link.

Final Thoughts

If you are looking to buy car insurance for your teenager, keep the above tips in mind. It will help you save a considerable amount of money on car insurance-related costs. Lastly, if you have any suggestions regarding improving the content, please forward your comments. Thank You.