According to a recent report, the demand for quotes on auto insurance for teen drivers has decreased dramatically and may lead to less insurance–premium revenue for insurance companies.
Recession Cause of Fewer Quotes on Auto Insurance
The report states that with many households struggling to make ends meet and parents looking for ways to cut back on expenses, fewer parents have been requesting quotes on auto insurance as they aren’t in the position to pay the high premiums. Rising gas prices are another concern for parents of teen drivers. Per year, U.S. parents spend approximately $3,100 on a teen driver, most of which goes to insurance. When parents request quotes on auto insurance to add their teenagers to their policies, they see increases of 50 to 100% in their insurance rates. It’s not surprising that in the current economy, one in seven parents reports delaying the day he gives his child the keys to his car.
Comparing Auto Insurance for Better Rates
Parents who do want their teenager to be able to drive are advised to compare quotes on auto insurance for teen drivers. Comparing quotes on auto insurance from a number of reputable companies can result in surprisingly affordable rates, especially when using comparison websites. Online comparison sites oftentimes have special offers and discounts for households with multiple cars, so even if parents have to pay more to insure a teen driver, some quotes on auto insurance might give them a multi-car discount that offsets the final premium amount.
Is it a Myth or Fact that Red Cars Cost More to Insure?
When you are considering the purchase of a new vehicle, you want to take time to consider the impact on your insurance policy. Among the myths that may worry you is the idea that red cars are more ...
Read More →
What is the Difference between Named Perils and Open Perils on your Insurance Policy?
While comparison shopping for insurance, you will encounter two different types of policies: named perils and open perils policies. Understanding the difference between the two insurance policies w...
Read More →
Do I need to Personal Injury Protection (PIP) Coverage on my Auto Insurance Policy?
Not everyone must buy personal injury protection, but it's certainly a beneficial addition to your auto insurance policy, should the coverage be provided in your area. Personal injury protection, o...
Read More →