Parents are often worried when the young drivers in their home get their driver's license and drive off for the first time on their own. Even if the child is an excellent driver, there is still some apprehension about them getting into a car accident. This is one of the main reasons that affordable auto insurance for teenagers is so important.
Although most teenagers just want their own car this is not always the best approach in terms of auto insurance. When a young driver is the primary or only driver of a car, the insurance rates are going to be high regardless of the year, make or model of the auto. A much better approach is for the parents to just add their child onto the policy they already have. Although this can be viewed as risky, since the rates will rise if the child does not drive safely, it's really the best approach to enjoying the best price.
Parents are always after their teenagers to study and now there's a car related reward for good grades. Many auto insurance companies recognize the importance of a solid education and for this reason they offer a percent discount for young drivers who maintain good grades. A great way for a parent to utilize this particular discount is by setting a rule that unless the child keeps the grades at the level that allows for the reduced insurance rate, the young driver will not be driving.
If the child does happen to get into a small collision, it may be prudent for the parents to handle the matter outside the scope of an insurance claim. Obviously this would only be relevant if the damage was not major. It can be worthwhile to pay a claim from your own pocket rather than having it affect the young driver's insurance rates.