Thanks to advancements in automotive technology, operating a motor vehicle is easier than ever. Although the widespread use of self-driving cars may still be a decade or two away—experts estimate that by 2040, 95 percent of new vehicles will be fully autonomous—features like rear cross-traffic alert, lane-keeping assist, and adaptive cruise control are common on the road today.
Despite such innovative and responsive safety features, operating a motor vehicle in traffic still requires a certain amount of expertise. Because new drivers do not possess the skills or experience needed to anticipate and avoid road hazards, they are more likely to get into collisions.
Inexperience (and not irresponsible behavior) is the leading contributor to teen car accidents.
According to the Insurance Institute for Highway Safety, the fatal accident rate per mile driven for motorists between 16 and 19 years old is almost three times that of drivers who are 20 or older. Additionally, the fatal crash rate for motorists between the ages of 16 and 17 is nearly twice as high as it is for drivers between the ages of 18 and 19.
Because of the risks that young drivers pose for both themselves and those on the road around them, they can expect to pay much higher premiums for auto insurance. Since motorists in the state of Louisiana are required by law to purchase a certain amount of coverage, this can add up fast for policyholders, especially if there are multiple teen drivers in their household.
Fortunately, there are strategic ways both parents and teens can save on car insurance in Louisiana. Read on to learn how:
1. By Taking Advantage of All Possible Discounts
The major insurance providers offer discounted rates for eligible policyholders of all ages. Both teens and parents can save on their premiums if:
- The teen maintains a high GPA;
- The teen spends a certain portion of the year away at school;
- All motorists in the household have a clean driving record;
- The household has a homeowners insurance policy with the same provider;
- The cars on the policy have certain safety features; or
- The motorists complete an approved defensive driving course.
2. By Selecting a Plan with a High Deductible
If you are concerned about costly monthly rates, you may want to consider purchasing a plan that has a high deductible. When you have a higher deductible, you can expect to pay a lower premium; however, it is important to keep in mind that should an accident occur, you will have to pay for a larger share of the damages out of pocket.
3. By Sharing Vehicles
It may be inconvenient at times, but sharing a vehicle among multiple drivers in a single household is one of the most effective ways to save on auto insurance. It is far more affordable to classify a teen as an occasional driver than as the main driver.
4. By Shopping Around
The insurance industry is a business like any other, which means major providers end up competing with one another to attract customers. For this reason, it is wise to shop around before purchasing a policy. You could end up saving a significant amount of money simply by searching for the best deal.
5. By Recording Driving Habits
Some auto insurance providers offer discounts for motorists who agree to record and report their driving habits using telematics. For example, you might receive a discounted premium simply for enrolling in the program, and as long as you practice safe driving habits, you may be eligible for additional savings.
A lot of motorists are surprised at the initial quotes they receive for teen drivers. If you use some of the tips above, though, you can find adequate coverage for a reasonable rate. You can also take comfort in the fact that the premiums to insure a teenager will decrease with every passing year if he or she always follows the rules of the road.