When it comes to purchasing Auto Insurance as a teenager, the waters can get a little bit murky. While no matter which route you take it is going to be expensive, many parents still wonder if it is cheaper to let their teen get their own policy. There are pros and cons to having your own car insurance policy as a teenager. You can read on below for a few of the advantages and disadvantages.
Pro: To Build Their Credit
Paying to insure your own car as a teenager is a big step in the right direction when it comes to establishing a payment history for yourself. In today’s difficult world, it is important to have excellent credit, and insuring your own car is a great place to start.
Con: Finding the Insurance
According to statistics, teen drivers are the most dangerous drivers on the road. Because teens are considered more likely to get in accidents, some insurance companies refuse to give a teen driver any type of Auto Insurance in their own policy. They do let parent’s put teens on their insurance however, so this is an option.
Pro: Reduce Future Costs
When a teen is on their parent’s insurance, they benefit from their parent’s good driving record. If you have your own insurance policy, then you end up reaping the benefits of your good record instead. This is give you good driver discounts and other perks that are given to good drivers as well.
Con: The Price is High
As a rule, most insurance companies charge higher rates for drivers under the age of 25. If you do find an insurance company that is willing to take you on, then you may find that the price is a lot higher than you expected. In other words, your plan may be a lot more expensive than simply giving your parents the money for your part of the bill would be.
