Reader’s Question:

I have a teenager son who just got his driver’s license. Does getting car insurance for him mean that I would be having more expenses?

Wyatt

Cedar Rapids, IA

It must be pretty exciting for your son to have his new car. But you should not be too excited about it because getting teen car insurance means an increase in your expenses. In case you do not know, car insurance companies view those that belong to the age bracket of below 25 years as the greatest risk to them compared to their older counterparts. This is because statistics has proven that in all the accidents that have occurred in the country, the largest percentage involves teen drivers who are at-fault.

So, how does this translate to what you are going to pay for your teenage boy’s car insurance?

Your teenage boy being considered a high-risk driver is tantamount to you paying more because car insurance companies there in Iowa will not offer you lower premiums. High-risk drivers get themselves to more accidents, thus making more claims. The car insurance company in turn loses money because of this. Just remember that the industry is still about making money.

In any case, you should not lose hope because you can still do something in order to lower what you are going to pay for your teenage son’s car insurance. The only way to avail of the cheapest car insurance for your teen is to strategize and plan well on how you are going to reduce the price. Because like I have said, there are ways to lower your expenses.