Auto Insurance for Teen Drivers

Tue 24 January 2017

Filed under misc

As soon as your teenager receives their driver’s license, they will begin to cause you even more anxiety. Not only will you worry every time they get behind the wheel, you will also worry about how much more you will need to pay in auto insurance premiums with a teenager on the policy. It is true that teen drivers cause large increases in insurance premiums, which is directly related to increases in risks taken on by the insurance company—teens are statistically more likely to get in an accident that results in an auto insurance claim than are other age groups. That’s why it’s important to ge the best rates possible, by comparing car insurance quotes.

So this means you don’t have to worry about locking up your teen until he or she is 25 years old (car insurance agents say this is the golden rate decrease age). What it does mean is that you need to make yourself aware of ways in which you can minimize the additional costs of getting auto insurance for your teen driver. Some helpful tips are included here, to help you do just that.

The Basics of Auto Insurance for Teen Drivers

While you may be tempted to keep your teen as far away from your own auto insurance policy as possible, chances are it will be more expensive to secure auto insurance for your teen on a separate auto insurance policy than it would be to put them on your own auto insurance policy. There are a number of things you (and your teen) can do to keep costs down. To verify specifically how your own auto insurance policy works in regard to teenage drivers, contact your agent.

  • Keep the grades up: Most auto insurance companies grant a “good student” discount for teen drivers who maintain a “B” average or better. Find out if your child can qualify for this discount. It offers a way for them to help allay your auto insurance costs and an incentive for them to succeed at school and on the road.
  • Set a good example: Your teen driver has been watching you drive since they were a young child. Modeling your own safe-driving habits will encourage your child to follow suit. Also, discuss the dangers of driving recklessly, with distracting passengers—or cell phones—and driving while intoxicated. If you are responsible in these areas, you will help your child model this behavior.
  • Consider an older, used car: If your auto insurance provider assigns specific drivers to specific vehicles (some do and some do not), you might want to consider purchasing a less expensive, used vehicle for your teen to drive. Since teens are the most expensive drivers to cover, keeping your teen from driving the family’s most expensive vehicles may reduce your premiums.
  • Driver’s education: Many auto insurance providers will also offer a discount to teen drivers that pass a driver’s education course.

These are some basic, simple ways to keep the auto insurance costs for your teenage driver down. There are other ways as well. For example, most auto insurance policy owners know that higher deductibles reduce premiums. This savings technique increases in value when teen drivers are part of the equation. Raising deductibles can become a very effective way to keep your auto insurance premiums down. In addition, if your teen leaves home for college, you may be able to drop them from your auto insurance policy; however, this means they cannot drive a vehicle—at school or at home. This option may or may not be practical. Additionally, you may want to consider shopping around for another auto insurance company. Looking at how different auto insurance companies cover teen drivers may allow you to find the most cost-effective solution, even if it means changing companies.

Consider utilizing these tips to keep your auto insurance premium costs down while insuring your teen driver. Also, ask your auto insurance agent if they have any other suggestions for reducing costs. Most of all, continue to keep the lines of communication open with your teenager. They need to recognize the serious financial and physical risks that come with a valid driver’s license. By including them in the decision-making process (and even in the bill-paying process) they may benefit from learning about the serious ramifications of adding a teen driver to an auto insurance policy. In the end, this may help your teen driver become a more responsible driver and to take their new role more seriously. To save the most money, we recommend filling out a teen driver auto insurance quote and comparing up to 5 offers from local agents in your area.



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