Costs to Insure a Teen Driver Are Staggering

It’s inevitable – eventually your child is going to turn into a teenager. And when 16 arrives, they’re probably going to want their driver’s license. It may be refreshing to be relieved of constant pick-ups and drop-offs, but it also means adding them to your auto insurance policy.

A married couple’s insurance rate is said to increase an average of 79% with the addition of a teen driver. Teenage boys are more expensive than girls to insure, boosting rates 92% on average. Girls raise rates an average of 67%. These rates may seem high, but they are lower than in past years. In 2013, the average insurance rate boost was 85% for teen additions.

Here are a few tips provided by insurance companies that may assist in cutting costs of adding your teen driver to a policy:

  • Make sure your child completes a driver training program. Many insurance companies provide discounts for teens who have completed certain programs. Every company differs, though, so do your research well in advance so that your child has time to complete training before their birthday.
  • Encourage good grades. Some insurance companies offer up to 15% in discounts for full-time students maintaining a B average. College students on the dean’s list or comparable honor may also qualify for discounts.
  • Teens shouldn’t drive high performance vehicles. The type of automobile your teen drives can affect policy rates greatly. Dangerous or fast sports cars will cost more than your typical four-door sedan to insure.
  • Research multiple insurance companies and policies. Just because you’ve been using a company for a few years doesn’t mean that company will offer the best rates and policies. The more thorough your search, the more likely you’ll pay the best rate for the best policy.
  • Take another look at your deductible amounts. If you can afford to increase your comprehensive or collision deductibles, the policy rate will likely drop. Even a change from $200 to $500 can make a significant difference.
  • Safety first. The most full-proof way to cut auto insurance costs while insuring a teenager is to teach them the importance of roadway safety. No teen should be allowed to drive anywhere at any time as soon as they gain their license. Experience makes good drivers – and young drivers have very little experience. So gradually allow your teen more responsibility as you continue training them and showing them the best ways to navigate local roadways. Insurance premiums are affected by driving behavior and can be lowered with good driving habits over time.

A step that many parent take, but that we advise against, is lowering policy coverage amounts to save money when a teen begins driving. Your insurance coverage exists to protect yourself, your family, and your belongings in the event of an accident. Chances are high that your teen will be involved in an accident of some sort – even if it’s just a minor fender bender. Having sufficient insurance coverage allows you to breathe easy and focus on bettering your teen’s driving, instead of constantly worrying about what might happen if an accident were to occur.

The lawyers at Jones & Swanson have extensive experience with auto insurance policies following an accident, so they’re able to provide recommendations for your individual situation.

For more information about auto insurance policies, and even to schedule a time for an auto accident attorney to review your auto insurance coverage for gaps, call 770-427-5498.