Teen Driver Guide [Part 1 of 3] – Expect High Insurance Rates

Whether you’re planning on adding your teen to your insurance plan or getting him/her an individual policy, be prepared for high rates.

- Advertisement -

Teen Driver Guide is a short 3 part series for (stressed) parents looking to help their kids get behind the wheel…for the first time.

a quick intro…

Helping your son or daughter get a driver’s license is a big endeavor. Between studying for the written test, taking drivers ed/driving lessons, and practicing for hours in the car, it’s definitely a cause for celebration when your teen finally earns the privilege of driving independently.

It’s a liberating feeling that all drivers understand. The only thing that enhances the freedom of being able to drive without supervision is also owning a vehicle. 

There are many reasons why you might be thinking of getting your teen driver his/her own car. Maybe you simply want to reward your son or daughter for putting in the work to get a license, or it could be a practical benefit if he/she was able to drive to school or run errands. 

Whatever your logic is, it’s important to keep a few things in mind when searching for a vehicle for your new driver, such as:  

Teen driver insurance rates will be high and that’s just part of life

Whether you’re planning on adding your teen to your insurance plan or getting him/her an individual policy, be prepared to run into high rates. 

Teenagers don’t have the experience that seasoned drivers have, and they’re also known for being impulsive. Because of these two factors, the risk of getting into a collision, getting ticketed for violations, and filing an insurance claim is higher among adolescents, which is why insurance companies charge higher premiums. 

Drivers aged 16 or 17 are nine times more likely to cause an accident than a 45-year-old driver.

According to this Huffington Post article on securing a teen cheaper auto insurance, “drivers aged 16 or 17 are nine times more likely to cause an accident than a 45-year-old driver. That’s why car insurance companies charge them three to four times more than they would typically charge people from safer categories.”

Families who add their children to their insurance policies can see premiums more than double, while individual teen policies tend to cost even more. It’s important to compare rates so that you can factor this into your budget when searching for a car. 

The good news is that there are certain ways to save on teen car insurance. For example, companies will sometimes offer discounts for students who complete certain drivers ed courses, earn good grades, or agree to have their driving monitored by telematics software to prove they’re demonstrating safe habits. Talk to different insurance companies to see what savings you may be able to snag. 

FILED UNDER:

UP NEXT