Driving a car marks a thrilling milestone for teens and parents. Young people see a driver’s license as a ticket to independence and adventure, while parents brace themselves for the jaw-dropping costs of adding an adolescent driver to their car insurance policy.
If you’re wondering how much is car insurance for a teenager, you’re probably already assuming that it’s expensive. However, there are ways to slim down the price tag, even if it’s just a little. What discounts are available? How do you qualify? And what can you do to minimize your premiums when you add a new, young driver? We answer all these questions and more in this post.
Teen Driver Insurance Costs: What You Need to Know
Did you know your insurance costs can potentially double with the addition of a newly licensed 16-year-old? Insurance companies view teen drivers as high-risk because they are more likely to cause accidents, receive tickets, and drive distracted than older drivers.
According to Forbes, the average annual cost to add a 16-year-old to a parent’s car insurance policy is over $2,000, equating to about an extra $167 per month. To save money, consider looking for discounts tailored for young drivers, such as credits for good grades, completing driver’s education courses, using safe driving apps, or committing to low-mileage driving.
What Factors Drive Costs for Teen Drivers?
Several factors have a direct impact on how much families will pay to add a teen driver to their auto insurance policies. If you’re curious about how much car insurance is for a teenager, these are the reasons the price is higher.
Driver’s Age
Teenagers face higher insurance expenses due to being inexperienced drivers and presenting a greater risk of being involved in accidents. Drivers ages 16 to 19 have the highest rates of accidents in the United States. Consequently, insurance companies frequently charge higher premiums to cover this age group.
Driving Record
Maintaining a clean driving record, which includes avoiding traffic violations and accidents, can result in considerable reductions in insurance premiums.
Location
The cost of your car insurance can be greatly affected by your location. Why? The frequency of insurance claims, population density, local weather, crime rates, unemployment rates, and road conditions can vary significantly based on location. For instance, residing in an area with an elevated number of accidents or high crime rates can result in an increased insurance premium.
Type of Car
When choosing a vehicle, keep in mind that safer, less powerful cars typically come with lower insurance costs. Consider purchasing an older, more affordable model for your teen that doesn’t require collision and comprehensive coverage yet still has safety features like airbags. You could eliminate unneeded coverage and qualify for a discount.
Coverage Level
Most states enforce minimum coverage requirements, and insurance companies are willing to underwrite policies with reduced coverage levels. When considering ownership of an aging vehicle experiencing significant depreciation, it may make sense to consider removing comprehensive and collision coverage. Just keep in mind that while it may save money to opt for a policy with reduced coverage, doing so heightens your financial risk in the event of a serious collision.
Cost Savings Tips
If a student maintains good grades, takes a defensive driving class, or is away at college, they may qualify for significantly reduced insurance costs. Understanding the available discounts and informing your insurance company about any qualifying circumstances is important for securing lower insurance rates.
Add Your Teen to an Existing Policy
While your teen lives at home, adding them to an existing insurance policy is usually the most affordable option. However, it is worth talking to your agent about the most cost-effective approach. In some cases, getting a separate policy for a teen can be the best route financially.
Good Grades
Students who uphold a minimum B average throughout high school may qualify for a discount. Students need to provide their recent academic report for eligibility. These good grades discount could potentially result in savings of up to 25% annually.
Defensive Driving
Enrolling your teenager in a defensive driving course or a qualified driver’s education program can save costs. By completing a defensive driving class this could reduce your annual premium.
Resident Student Discount
If your child attends a college far from home and doesn’t have a car but occasionally drives yours when visiting, it’s important to inform your insurance company. Keeping the student on your policy while at college can often be much more affordable than when they live with you.
How Much Is Car Insurance for a Teenager? Eber Can Help
Teen car insurance can be expensive, but there are ways to lower the costs. When seeking personal auto insurance, going with an insurance company known for its customer service and experienced professionals can save you big money.
Eber & Associates, having served communities since 2001, is ready to serve your family’s needs. Our experienced insurance professionals are experts in finding the best coverage and value for teen drivers.
Save on insurance for your teen now by contacting us today or submitting an online request for a quote.
