Car Insurance for Teenagers: Why are car insurance for teenagers more expensive? Well, car insurance companies tend to raise costs when it comes to young drivers, a segment of society that has an inevitable but very important pre-existing condition: inexperience.
In addition, the companies give them a behavioral characteristic in particular to teenage drivers, they are attributed reckless attitudes typical of their age, therefore they are also defined as high-risk drivers. As a result, the cost of the policy rises considerably.
Although teenagers tend to drive fewer miles than the rest of the population, prices rise because of the number of accidents registered among young people. According to statistical data provided by the Institute of Insurance and Highway Safety (IIHS), the accident rate among adolescents aged 16 to 19 years is four times higher than the average recorded by the population group of 20 years.
Because of this, the first thing recommended to teenagers, and their parents, who are looking for affordable alternatives in their auto insurance is to investigate the market. Do your homework and investigate everything that the market can offer you, do not be afraid and quote prices online, which are quick and accessible from any place and time.
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Car Insurance for Teenagers
Ready then to start researching prices? Well, before turning on your computer and accessing online quotes, you must have the following information ready for your work to be more efficient:
- Driver’s information: Name, date of birth, sex and address.
- Vehicle information: Make, model and year, annual miles to drive, type of use (pleasure, work, to go to school)
- Type of coverage you want: Basic legal liability, full coverage (extended and collision), additional protection as “uninsured driver”, among others.
How can I get discounts? Many companies offer discounts for “Good student” for that reason, your teen driver if you want to obtain low prices for your insurance policy, you must make sure you get very good grades. Insurance companies may request the information to be submitted annually or quarterly to see if the adolescent maintains the qualifications for the discount.
In addition, some companies offer an additional discount if the teenager takes a defensive driving course every year. The company, in general, offers this type of training.
You could also consider:
- Acquire a car that offers greater security. Driving a safe car in good condition and providing peace of mind knowing that the teen driver has greater protection, could lower the auto insurance premiums by reducing the risk of an accident.
- Have multiple policies. In general, there are discounts for acquiring several policies (home insurance, auto insurance, etc.) with the same insurance company. Check with your agent to know if this discount is available.
There is no reason to fear the cost of insurance for the adolescent, your costs may be accessible if you investigate a little among the existing alternatives, and also be advised by an experienced and trusted insurance agent.
Do you have a teenager at home? We will be happy to hear your experiences and opinions in the comments section below.
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Teen drivers have higher insurance rates due to the lack of experience behind the wheel and to assume risky attitudes. And the increase in risks means that insurance rates will be higher. Teen drivers are also the most likely to be involved in an accident, with age 16-year-old drivers being 2.5 times more likely to have an accident than a driver from 20 – to 24 years of age.
Accumulating fines or accidents can quickly put the teen driver in the position of having to have SR-22 insurance, which will penalize with higher rates, as well as making it difficult to ensure the driver.
Your teen driver can lower their auto insurance rate through:
- Maintain good grades for a good student discount
- Complete a driver education course
- Pay a higher deductible
- Driving a sensitive vehicle (a sedan over a sports car)
The steps you can take to reduce your teen driver’s car insurance rate are:
- Ask about multiple auto insurance discounts on vehicles
- Check insurance discounts for the multiple insurance policy, if you have the same company for your home and car insurance
- Ask if you can include your teen driver on your policy as an “occasional” or travel driver “solely for pleasure”
Graduated driver’s licenses (GDL)
To lower the teen drivers’ mortality rate, all states have enacted the Graduated Driver License (GDL) laws that provide driving privileges after passing the specific program for graduate drivers. GDL Programs allow teen drivers to gain confidence in driving ability before obtaining driving privileges.
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Licensing programs for the graduate driver include three stages:
- Stage learning begins not before age 16 and:
- Lasts at least 6 months
- Have at least 30 to 50 hours of supervised parent-teacher practice
- An intermediate stage that lasts at least until the age of 18 and includes:
- Restriction of driving at night from 09:00 or 10:00 pm
- Not counting (or not more than one) with teenage passengers (teens are two and a half times more likely to engage in potentially risky behaviors when driving with another teenager versus driving alone, three times with multiple passengers)
- Full Privileged Stage
- A standard driver’s license is issued
Adding a teen driver to your policy
Many insurers require that all licensed drivers in your home carry some type of auto insurance.
Do I have to add a teenage driver with a learner’s permit for my policy?
That depends on your state’s insurance requirements, but in most cases, your policy will cover your teen driver until he or she has a license.
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While some states do not require insurance for an adolescent driver who holds a learner’s permit, all states, with the exception of New Hampshire, require coverage for licensed drivers.
Do teenage drivers have to be insured in all the cars in their own home?
Virtually every insurer requires that all family members licensed in the same house be included in their policy, whether they drive their cars or not. In states that require vehicle-driver compatibility, each driver in your home will be named as the primary driver for a vehicle, so you can identify with which automobile your child will be the primary driver.