Can you guess the age group that gets into the most car accidents every year? Is it 20-25? 25-30?
You would be wrong on both accounts. The answer is 15-20. Due to inexperience and general distractions, teen drivers are more likely to crash than anyone else.
It's for this reason that the premiums that are attached to young drivers car insurance are so expensive. Covering teens is seen as a huge risk.
That doesn't mean that you have to hold off on letting your child get their driver's license. There are ways to put them on the road and keep your premiums down at the same time. Check out this guide to learn more.
Do Teens Have to Be Insured?
To tell the truth, everyone needs some kind of insurance. Teens are no exception to the rule. It's against the law in most states to drive without it.
As far as minimum insurance coverage requirements go, every state is different. You'll have to look it up to find out what kind of policy you need to open for your teen.
Why Is Young Drivers Car Insurance So Expensive?
Young driver car insurance is so expensive because of their inexperience behind the wheel.
Since your teen is new to the road, the insurance company views them as a financial risk. They are more likely to get into an accident than someone who's been driving for several years.
Your child will have to prove that they are a responsible driver before the insurance company will be willing to shave some of the cost off their premium.
Age and experience aren't the only factors insurance companies look at when deciding how much a person will pay. Credit score and marital status are two large contributors as well. Since most teens don't have much going for them in terms of credit and aren't married, it can cause them to pay more for their insurance.
Adding Your Teen to Your Policy
You can save some money by adding your child to your policy instead of getting separate teen driver car insurance.
In most cases, adding your teen is a simple matter of giving your insurance company a call and providing them with the information they ask for.
Gather Relevant Information
To make your phone call with your insurance company go as smoothly and quickly as possible, it's a good idea to gather all the relevant information they'll need ahead of time.
Grab your teen's driver's license, and if they're going to be driving a different vehicle than yours, make sure you have detailed info on it.
Get Your Insurance Company on the Phone
With your teen's driver's license in hand, dial the number for your insurance company.
In many cases, they'll contact you as soon as your child gets old enough to try for their license, so you might be able to skip this step.
Go Over All the Fine Details
Once you give the company your child's license number and tell them about the car that the teen will be driving, they'll give you a few car insurance quotes.
Make sure that you get a complete rundown on everything you're going to be charged for.
Take Your Time
This is less of a step and more just helpful advice. You don't have to jump into a policy right away.
After talking to your insurance company, you might decide that it would be a better idea to open a separate teen driver's car insurance policy for your child. It may even be more affordable to switch insurance companies instead of sticking with your current one.
How Much Will It Cost to Add Your Teen?
Adding your child to your insurance policy might be cheaper than opening a separate one, but it's still expensive. You could spend up to a thousand dollars for a simple six-month policy.
The price can go up even further if it's a son that you're adding to your policy. Young men are a little more expensive to insure because they're responsible for more car accidents than women.
How Can Teens Save Money?
Are the insurance quotes you're getting stressing you out? You'll be happy to know that there are ways that teens and parents can shave a few dollars off their policy.
Taking a driving course, being safe on the road, and making good grades are only a few good options.
Make Good Grades
Teens that are on the AB honor roll pave a positive future for themselves in more ways than one. Most insurance companies provide discounts for those who make good grades.
Those who have a 3.0 GPA can enjoy hundreds of dollars in savings. All they have to do is bring their latest report card to their insurance company's office.
Take a Driving Course
Most high schools offer driver's ed to some degree. It's a completely optional class unless you want to save money on your car insurance for teen drivers. It becomes a little more mandatory in that case.
Insurance companies offer discounts to those who can show that they've taken a driving course because it counts as experience. People who take a road safety class are less likely to get into an accident than others.
Some insurance companies will require you to take a certain course, but for the most part, any kind of schooling will do.
Don't Drive as Much
It will be difficult for your child to get into an accident if they're barely behind the wheel. It's flawless logic, really.
Parents who list their teen as an occasional driver instead of a principal one can expect to save 30 dollars or more on their policy. When you compare those savings to how much you're spending, it's pretty much pennies, but it's something.
Purchase a Vehicle With Plenty of Safety Features
If you buy a vehicle with a bunch of safety features, it will mean that you (or your teen) are more secure on the road. It's for this reason that insurance companies will give you a discount for driving it.
To this end, don't buy your child a sports car. They're not that safe to operate, so your insurance will shoot through the roof. Opt for a four-door sedan instead.
We will say that the amount you save won't be a lot. It does stack up when paired with other discounts, however.
Buy a Cheaper Car
Let's say that you own three cars. You can't drive them without insuring all of them. When you're putting them on your policy, you'll need to assign a principal driver to them.
If you're going to pair your child to one of the vehicles, make sure it's the cheapest one out of the three. That will help you make the most out of the multi-car discount without paying anything extra.
Don't Buy Your Child a New Car
When your teen gets close to driving age, they're going to beg you every day for a new car. We're here to tell you to resist their request.
It might make them mad at you, but going used is worth their anger. For one, if your child wrecks the car, it won't cost as much to fix it.
For two, brand new cars are much more expensive to insure than used ones.
Driving Safely
As time moves on, teens with a clean driving record can qualify for a safe driving discount.
It's important to note that it takes time for this discount to go into effect. Teens have to have three years of driving under their belt first.
"Away" Discount
Is your teen in college? Are they not living with you while they attend high school? You might qualify for a significant student away discount.
Your insurance company could end up taking a few hundred dollars off your policy.
Military Discounts
If your child is part of the military, you'll be able to get a USAA membership. It comes with a few perks, including lower insurance premiums.
Many insurance companies do offer a military discount. It's worth asking about at least.
Monitoring Programs
This option is a bit iffy. There are some insurance companies that offer monitoring programs. What this means is that they'll track your child's driving habits through a smartphone app or a device that you'll install in the car.
If the app or device is able to prove that your teen is a safe driver, you'll be able to take advantage of a huge discount.
It might not be worth the risks, however. You'll be giving your insurance company a lot of your personal data. Not everyone can be trusted with that kind of information.
It's also worth mentioning that the insurance company might give you a discount; It's not guaranteed.
What is guaranteed is that they'll hit your policy with a penalty if the monitoring program shows that your child isn't a safe driver. You could end up paying a lot more.
Go With a Higher Deductible
Let's say that your teen gets into an accident. They're fine, but they did about 1000 dollars worth of damage to the vehicle. Your deductible is the amount of money you have to pay toward the repairs before your insurance company steps in to take care of the rest.
Going with a higher deductible can net you a lower premium. The catch is that you'll have to make sure you can afford to pay it. If you can't, what's the point?
Bundle Your Insurance
If your insurance company will allow you to bundle your home and auto policies, we would suggest doing so. Many businesses will give you a loyalty discount for it.
It's also convenient when you think about it. You'll be able to make a single payment to one place instead of making one to two separate companies.
Compare Companies
When shopping around for a car, most people don't go with the first one they see. They take a few different ones out for a test drive.
You should have this mindset when you're looking for an auto policy for your teen. Get a quote from at least three different companies and compare them.
Lead Through Example
Before your child can go get their license, they'll need to have their permit for a while. That's where you come in.
If you teach them good driving habits early on, they'll take them to heart once they have their license. When you're in the car with your child, obey the road signs, and don't speed.
Use your turn signal every time, and don't pull up too close to other cars. When you have a clean driving record, it's more likely that your child will as well.
What Age Do Premiums Decrease?
Teens can expect their young drivers car insurance premiums to drop once they reach the age of 20. During this time, insurance will still be expensive, but it will be a bit more manageable.
As far as significant savings go, that won't happen until the teen turns 25 years old.
Get Your New Driver Covered
Getting a driver's license is a huge milestone for teens, but it can be a financial headache for parents. Young drivers car insurance isn't easy on the wallet.
Since teens are considered inexperienced drivers, it's riskier for insurance companies to cover them.
As you can see, there are ways to put your teen on your policy without emptying your bank account. Follow the tips that we've mentioned here today, and for more tips that will help you save money, feel free to check out the rest of our blog.
