As a parent, there’s nothing scarier than the thought of your teen hitting the road for the first time. Along with all the anxieties and fears around their safety comes another dreaded aspect – the cost of auto insurance for teenage drivers.
Why is Teen Auto Insurance Expensive?
First things first – it’s essential to understand why insurance companies charge higher rates for young drivers. The most significant factor is simply that teen drivers are considered high-risk due to their lack of driving experience. This inexperience leads to more accidents, and as a result, higher insurance claims. Additionally, teenagers are more prone to distracted driving and engaging in riskier behavior behind the wheel.
Statistics Speak Volumes
- According to the Centers for Disease Control and Prevention (CDC), motor vehicle crashes are the leading cause of death for U.S. teens.
- The CDC also reports that per mile driven, teen drivers aged 16-19 are nearly three times more likely to be in a fatal crash than drivers aged 20 and older.
- A study conducted by WalletHub found that adding a 16-year-old driver to a full coverage policy increases the average cost by $3,824 per year.
Tips on Finding Affordable Teen Auto Insurance Quotes
While you can’t change the fact that your teenager falls into a high-risk category, you can take steps to minimize the financial impact. Here are some tips on finding affordable car insurance for your teen:
Take Advantage of Discounts
Many insurance companies offer discounts targeted specifically towards teenage drivers. These can include:
- Good Student Discount: If your teen maintains a “B” average or higher, they may be eligible for a discount of up to 25% on their auto insurance.
- Driver’s Education Discount: Completing an approved driver’s education course can save up to 10% on insurance premiums.
- Defensive Driving Course Discount: Some insurers offer discounts for teens who complete a defensive driving course.
Shop Around
Don’t settle for the first quote you receive. It’s crucial to compare rates from various insurance providers, as rates can differ significantly between companies. Be sure also to ask about available discounts while shopping around.
Choose the Right Vehicle
The vehicle your teen drives plays a significant role in determining insurance rates. Opting for vehicles with excellent safety ratings and features can help reduce premiums. Additionally, avoid choosing high-performance cars, as these are often more expensive to insure.
Consider Adjusting Coverage
While it might be tempting to choose the minimum coverage required by law, this may not be enough to protect your family financially in an accident. Instead, consider increasing liability limits and adding comprehensive and collision coverage. To offset these increased costs, consider raising your deductible – doing so can lead to significant savings on insurance premiums.
Add Your Teen to Your Policy
One way to save money is by adding your teenager onto your existing insurance policy instead of getting them their own policy. This option can result in lower overall premiums, especially if you have multiple vehicles insured under the policy.
