Car Insurance Questions for Teens
How much will my car insurance rates increase with a teen driver?
Getting a driver’s license in the United States is a rite of passage for almost every teenager. But this rite of passage leaves many American parents in panic mode. The very thought of their babies behind the wheel and exposed to numerous dangers on the road is one fear that keeps parents awake at night. But another very common fear among American parents with teenage drivers is the rising cost of insurance rates. It is true that adding a teenage driver to your car insurance policy is likely to hike your rates a bit, but there are ways to go around it. Here we will talk about how much of a hike you can expect, and how to alleviate those increases.
There is no question that teens present a liability to insurance companies, because statistically speaking, they account for 60% of the collisions on American roads today. That being said, knowing what goes into the costs of a car insurance policy, and how to tailor that to your own teenager’s needs, will account for how much of a hike you can expect.
Generally speaking, factors that lead to increases in car insurance quotes can be alleviated for teens by following some common sense. Factors that will raise your costs include larger vehicles, poor or no driving record, poor or no insurance history, and not having security or anti-theft devices installed on the vehicle in question. You can use this information to mitigate the costs of your teen’s driving insurance.
You can alleviate your insurance costs as a parent of a teen driver by first ensuring your teen is driving a sensible vehicle. Generally speaking the older the car and the smaller it is will lead to reductions in insurance. As well, though your teenager may not have been driving long enough, or at all, to establish a good driving record, many insurance companies today are giving discounts to teens that can prove they have taken driver’s education courses. This shows the insurance company the teen is willing to take on the responsibility of safer driving, and minimizes the teen’s liability to the insurance company.
In addition, today’s teenagers are experiencing more discounts than ever before, and you may even want to ask your car insurance company if there are any good student discounts available. Good student discounts are a way of insurance companies earning your business and rewarding teens for responsible progress in school. The logic behind this is if a student is responsible at school, they will more than likely be responsible on the road as well.
Yes you will see a hike in insurance when you add a teen driver, but there is no one amount to say how far that hike will go. The decision to cut costs on your car insurance will have to be made between you and your teen and how responsible they are willing to be to go through this rite of passage.