Teens and Car Insurance who should Pay – Teens

Car insurance rates for teens are quite high these days, more than I would care to pay. Now put that teen in a major city, and BOOM! Rates are doubled and in some extreme cases tripled.

Should you as a parent pay for your teen’s insurance bill? I don’t think so.

Driving is a very large step in a teen’s life. Most teens begin driving at the age of 16-17, depending on the country you are from. Having the responsibility of owning a car is huge…included in that responsibility is all of the costs that go along with it.

If a teen pays for their own insurance it will assist them in two major ways:

1. It will help to prevent them from incurring any traffic violations. Look at it this way – if someone paid my insurance and I received a ticket that caused my insurance rates to go up, what would I care? I’m not paying for it. If a teen knows their rates will skyrocket by getting traffic violations, they will be far less inclined to break the law because they know they will be paying more out of their own pocket.

2. They will learn the value of a dollar. By paying the high beginner’s insurance rates, teens will understand that money isn’t to be taken lightly. It may result in driving slower to conserve fuel, less frequent shopping binges at the mall amongst other frivolous spending habits. Your teen could mature 30 years in the span of a few months once he or she realizes that insurance costs a lot of money.

On the flip side, if parents pay for their teen’s insurance, they may not take as much care and consideration in driving. Handing everything to your teen is not a good idea at all, unless you want them to take advantage of what’s given to them. Now keep in mind that all teens are not the same; however for the most part one that pays their own way will likely be more financially stable in later years.

Talk to your teen about insurance when he or she decides to purchase a vehicle. Help them find a reputable company with good rates. Once you do that, they are on their own. Of course, as any parent would do, offer them guidance and be a backup plan if they can’t cope financially with it. But with an informed talk and some knowledge, your teen can be on the road independently with ease.