Vehicle  insurance premiums are heavily based on drivers and their driving history and since a newly licensed teen does not have a record operating an automobile, their rates remain more costly than older age groups until they gain enough experience to prove that they are responsible drivers. Although insurers may not have a driving history to go by, there are other ways teens can reduce the cost of coverage.

Most importantly, teenagers and all drivers for that matter, need to drive safely and obey traffic laws at all times; driving irresponsibly and ignoring traffic laws increases the chances of obtaining tickets and being involved in traffic accidents which in turn will lead to increased rates. On the other hand, if a teenager maintains a clean driving record for three years they may be eligible for a good driver discount that can reduce premiums significantly.

Getting a first car can be a very exciting time, but make sure the cost of insuring it is affordable; a consumer guide provided by the Wisconsin Office of the Commissioner of Insurance suggests that teens check premium rates before buying an automobile. The main reason behind this is that the cost of insuring vehicles can vary significantly due to many reasons such as safety features and the cost of repairing it; even if two automobiles are in the same class, the price to insure them will be different.

Another way to reduce premiums is to shop around and shop frequently; once a teen has found an insurer that can offer them the cheapest coverage they should be sure to periodically compare rates, especially at time of renewal. The reason why it is important to occasionally comparison shop is that the insurer who may have been the cheapest at one point may no longer be the most affordable; comparing rates is the only way to make sure the best price is being paid for coverage. Although young motorists pay more than any other age group, there are ways to save and reduce premiums and driving safe is the key to making policies more affordable.