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Insurance companies charge higher premiums because younger people are more likely to get into accidents. It may simply be inexperience, or it could be a lack of restraint. Whatever the reason, young drivers are statistically the most likely to file claims.

It doesn't all have to be bad news though.

There are any number of ways to lower premiums despite the baggage of a young person with a green driving record on your policy. The first step is research. There are plenty of insurance companies that will provide you with a free online quote. Every insurance company calculates premiums differently, so no single insurance company will be cheaper for everyone. What might be cheaper for you will not necessarily be cheaper for a young driver.

What kind of car the young driver is driving will make a difference in the premium. Avoid fast and sporty. Undoubtedly that is what young people want, but if you want to lower rates, then don't give it to them. Get a car that comes with a modest sized engine, and is cheaper to repair. Older model cars are also a good choice.

You can also strip the coverage on a young driver to the bare minimum. This professes what is perhaps an unjustified faith in their driving ability, but dropping comprehensive coverage can shave a fair bit off your premiums. State laws require that all drivers be insured, but they usually don't say how much coverage you need. So sticking a young driver in an older car fits this strategy perfectly.

Encourage younger drivers who are still in school to get good grades. In the insurance company's eyes, good grades reflect a more responsible person.

Frequently, young people are added onto their parents' insurance policy. While this is not a bad idea, parents should realize that this can jeopardize their no claims bonus. A protected no claims bonus will not be affected by any accidents a young driver may get into. This is probably the ideal route for insuring a young driver.

There are benefits to insuring a young driver under his own policy though. It might be more expensive in the short term, but the longer a person is insured with a clean record, the lower their premiums will be. This can save money in the long term.

There are also training courses available that young drivers can take that will lower insurance premiums. These policies vary from company to company so check with your insurer to see what they offer. Some companies require a minimum age of 20 for this discount.

What you don't want to do is take out an insurance policy under an older person's name while slipping in a younger person onto it. This can be considered insurance fraud, and if you are caught abusing the system, the insurance company can and will reject any claim you might file, and will probably terminate your contract to boot.

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