Why Are Teens So Expensive to Insure?
Posted August 10, 2021 in Auto Insurance
3 Minute Read:
For many parents, the experience of their children getting their driver’s licenses is both a blessing and a curse. On the plus side, it means that their children are becoming more self-sufficient. But, on the other hand, it means having to put their kids on their insurance policy, which can be pricey.
But why is this the case?
Due to a lack of driving experience and increased distracted driving, teens and younger drivers are more prone to accidents. The greater the risk, the greater the chance of large payouts for insurers, which means higher premiums for teen drivers.
Although paying insurance for teens is expensive, there are things you can do to offset these increases.
Adding Your Child to The Existing Auto Insurance Policy
It is cheaper to add your teenager to your existing policy than getting them a separate auto policy. For instance, a 16-year-old male could reduce his rates significantly by doing this.
Maybe your child lives in your household and drives a vehicle you own. You will save a sizable chunk of money by adding them to a family auto policy as secondary drivers. In this case, the policyholder should inform their insurance agent/company that their teenager is being added to the policy.
Additionally, you may qualify for many of the discounts offered by your insurance company that a new driver could not, such as bundling savings, multiple-car discounts, or loyalty.
Good Student Discount and Other Discounts for Teen Drivers
The initial cost of adding your teen to your auto insurance policy might feel staggering, but the good news is that it gets better with time. As the teen continues to gain more driving experience and avoids accidents and traffic tickets, their auto insurance rate should decrease. This is because they don’t represent as much of a risk to the insurer.
Most insurers even offer discounts to teens who practice safe driving and get good grades (B average or better) in high school or college.
Young drivers who take programs to improve their driving skills can also be rewarded with discounts. Also, if your child moves away to college (over 100 miles away from home) and doesn’t have a car with them, they may qualify for a fairly substantial discount.
Make sure to check with your insurance company to know if these discounts apply.
Buy a Car That’s Cheaper to Insure
If you are considering getting your teen a new or used car, opt for a cheaper model with lower insurance costs.
Talk to the knowledgeable insurance agents at Gallant Risk & Insurance Services, to learn more and make sure your teen has the necessary auto insurance policy at great rates.