As a parent, you may be just as excited about buying your first car as your son or daughter. And so you go to the car dealership, get the model you want for your son or daughter, and get ready to write a check for him or her. But when he finds out about the auto insurance premium he’s required to pay, he’s shocked and asks, “Why is teen auto insurance worth almost as much as the car itself?”

Well, your son or daughter is 16 years old. That alone is a big factor to consider.

Your choice of car for your teen driver determines part of the car insurance premium you must pay. You can buy him a new sedan, a sports car, or a run-down vehicle. It’s your choice. But insurance costs would vary greatly with each vehicle.

Outside of being a new and young driver, insurance companies can’t make an accurate assessment of how well your teen drives. This forces them to give the highest possible premium they have on their charts.

Everyone knows that drivers with no history of accidents or moving violations enjoy low premiums. However, those who frequently visit auto repair centers due to collisions have no choice but to pay the costs that skyrocket each month.

Going back to the car that you will give to your teenager, the insurance provider will first check the safety features of the car. Is the car totally safe to drive? Does it have features that can protect the driver and his passengers? Is the car easy to drive and not too fast for a teenage driver?

Is the vehicle new and not likely to be sent in for repair in the future? These are the things that determine the price of teen auto insurance. Now that you know about them, you can do everything you can to lower your premium.

Your young driver’s knowledge and driving habits are also a factor to consider. But again, since insurance providers don’t yet have enough data to support this fact, they would use your son or daughter’s report card to assess their attitude along the way.

Studies show that teens who do well in school tend to become more responsible drivers than those who score poorly. And so teens who have a B or better overall weighted average in school receive lower premiums than those whose grades are lower.