Car Insurance

What You Should Know If You’re Adding a Teen Driver to Your Car Insurance Policy

Here are the most important pieces of information you should know if you're getting car insurance for your teen.

By TheCarzingTeam December 6, 2018 | Car Insurance

Car Insurance

It’s time. Gone are the days of having to run kids around to school, soccer, or hangouts. The day has come for your teenager to take to the road, to take the next step towards adulthood, be more independent, and learn how to drive on their own.

But like all other American drivers, teen drivers are required to have auto insurance. The best, most practical option is to add them to their parents’ auto insurance plans.

If you are among those parents, there’s a lot more you need to know about getting car insurance for your teens. Here are the most important facts you should know before you can get your teen behind the wheel.

“Teen drivers are not exempted from the auto insurance requirement.”

Car insurance for teens is costly

There is no cheap way to insure teenagers in the U.S. In fact, recently released findings of its research that premiums on car insurance policies jump by up to 82% on the national average whenever a teen driver is added to a plan. This figure varies by state, but cost is always dramatically increased.

This can be attributed to one major reason. According to analysts, during their first year as drivers, teens have a much higher probability of being involved in car crashes. To account for that risk, insurers impose added costs on the premium.

“There is no way to get cheap auto insurance for teenagers in the U.S.”

Additionally, if you are the parent of a young man, insuring your male teen driver will result in a 20% higher premium added to your car insurance as opposed to his female counterpart. Insurers have assessed boys to have a higher risk profile. This may be due to boys being generally more aggressive and impulsive, especially when out on the roads.

Adding them to your auto insurance plan is still practical

It is costly, but it remains the most practical option. Getting separate car insurance for your teens would likely cost far more. Insurance firms tie premiums to credit scores.  As your teens have yet to build good credit scores, taking their own insurance plans would undoubtedly lead to higher premiums.

Moreover, buying your teen a new car won’t be cheap either. Aside from the high prices of new vehicles, insuring a new car will similarly result in higher premiums. On top of that, premiums rise further if your teen gets even a single a traffic ticket, so push them to be as careful possible when starting out on the road.

“Getting separate car insurance for your teen would likely cost far more than adding them to your current policy.”

Other ways to save

It is costly to insure your teen, but, there are ways to save at least a few hundred dollars. Buying a used car, avoiding traffic mishaps or tickets, and opting to buy an insurance product with lower premium can all help to drive costs down. Even in these cases, comparison shopping still works.

Other savings strategies include installing electronic driving monitors in the vehicle and regularly sending the car for maintenance checkups. A teen who maintains above-average grades or B average in school is also usually rewarded by the insurance industry with deductions on premiums.

If you need more assistance with your car purchase, be sure to contact our team at [email protected]!  

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