High GPA Lowers Auto Insurance for Teenagers:
Teenagers
who maintain a grade point average of 3.0 or higher, pay as much as
twenty percent less for auto insurance, claims a Auto Insurance report
today.
Report
claims that pushing teenagers to excel in academics will do more than
just help them into a better college or university. It will lower their
auto insurance premiums as well.
It all goes back to those
actuarial tables. These tables, based on with rather complex
mathematical formulas, help underwriters in determining how likely a
certain type of driver with x number of years of experience, having y
number of moving violations/accidents on his/her record, driving a z
make and model vehicle in a particular geographic region is to have an
accident – and what that accident is likely to cost the company if a
claim is filed.
Decades of actuarial evidence, dating from the 1920s when teenagers began operating motor vehicles, show that (A) teens are the most likely to have a serious accident (arguably, most of these are single-car accidents, but still result in considerable property damage and serious injuries), and (B) teens who are serious about academics have a much lower rate of such accidents.
This is why auto insurers offer the best car insurance deals to teens that have a higher academic standing.
How Much?
Of course, even good student car insurance is going to be substantially higher than rates for drivers over the age of 25. However, by maintaining a grade point average of 3.0 or higher, teenagers can cut their auto insurance bills by as much as 20% or more.
This can also apply when a teen driver is added to an existing policy – which may be a less expensive alternative, particularly when the teen in question will be driving the family car instead of his/her own.
What Else Can Be Done?
It goes without saying that keeping a clean driving record and avoiding even minor accidents will go a long way toward maintaining lower-cost car insurance for young drivers. Even a minor infraction can cause any discounts to disappear.
Another way to lower insurance costs for young drivers is to enroll in an approved defensive driving course – above and beyond the regular driver’s education courses taught in high school. Aside from learning more about how to stay safe while on the highway, teens receive a certification that will make your insurer much more inclined to offer further discounts on their auto insurance premiums
Decades of actuarial evidence, dating from the 1920s when teenagers began operating motor vehicles, show that (A) teens are the most likely to have a serious accident (arguably, most of these are single-car accidents, but still result in considerable property damage and serious injuries), and (B) teens who are serious about academics have a much lower rate of such accidents.
This is why auto insurers offer the best car insurance deals to teens that have a higher academic standing.
How Much?
Of course, even good student car insurance is going to be substantially higher than rates for drivers over the age of 25. However, by maintaining a grade point average of 3.0 or higher, teenagers can cut their auto insurance bills by as much as 20% or more.
This can also apply when a teen driver is added to an existing policy – which may be a less expensive alternative, particularly when the teen in question will be driving the family car instead of his/her own.
What Else Can Be Done?
It goes without saying that keeping a clean driving record and avoiding even minor accidents will go a long way toward maintaining lower-cost car insurance for young drivers. Even a minor infraction can cause any discounts to disappear.
Another way to lower insurance costs for young drivers is to enroll in an approved defensive driving course – above and beyond the regular driver’s education courses taught in high school. Aside from learning more about how to stay safe while on the highway, teens receive a certification that will make your insurer much more inclined to offer further discounts on their auto insurance premiums