Understanding Your Auto Insurance Policy

Are you the parent of one or more teenagers? Are you worried about how much it's going to cost you when each one starts to drive? If you have friends with children who have already started driving, you may have heard them complain about how expensive it is and how much their insurance rates have gone up as a result. Although it can be expensive to insure a teen driver, there are still a few things that you can look into that may make the cost much more affordable. A few of these things include:

Getting good grades: Some auto insurance companies will give a significant discount to teenagers who get good grades in school. Since students who get good grades are less likely to be troublemakers, they'll also be less likely to do things like street racing or skipping school to go hang out at the mall with friends. Although insurance companies may offer discounts for this lack of troublesome behavior, they can differ in exactly what discounts are offered and how they're calculated. Some companies might calculate based on the student's GPA while others might do it based on how many As or Bs are on each report card. As a result, it can be worth calling around to find a company that will offer you and your child the best possible discount.

Successful driving course completion: It's not uncommon for an insurance company to offer discounts to students who successfully pass the driver's education class in school. Even if you were planning to teach your student to drive yourself, it can be more than worth the additional class fees to have their school teach your student how to drive. Also, you might want to consider looking for a defensive driving course targeted to teen drivers. A defensive driving class goes beyond what he or she might have learned in school, better teaching your child how to handle the vehicle in the event of an accident. Because accidents are less likely to happen or to be severe for those who have taken defensive driving courses, your auto insurance company may offer a large discount to anyone who can prove that these courses have been taken.

Less driving: When your teen first gets his or her license, he or she will most likely want to hit the open road immediately. Unfortunately, the more miles that you drive, the more your auto insurance rates may be. In order to qualify for a lower rate, you may have to promise that your vehicle or vehicles won't be driven beyond a certain number of miles every year. Sometimes, your insurance company may require you to visit a local mechanic so that they can have an accurate mileage count. Other times, they'll simply take you at your word. If the latter applies and they later find out that you've not told the complete truth and that your teen has been driving significantly more miles than you stated, they may raise their rates significantly or they may cancel your policy completely. It's best to tell the truth about how much driving will be done.

For more information, contact companies like Oliveira Gilbert C Insurance Agency Inc.