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.
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 →
Am I able to Change My Home or Auto Insurance Policies Mid-Term?
As you searched for your current home or auto insurance policy, you probably did the "right thing" and compared prices before you settled on the policies which you bought. Now, you're mid-term with...
Read More →
Can I Keep the Auto Insurance Claim Money and Repair the Damage Myself?
When you make a claim on your auto insurance after an accident or an incident that caused damage, you will receive funds to make repairs after an estimate is obtained for the cost. If you do not ha...
Read More →