Auto Insurance for your Teen

What is there to know about Teen Auto Insurance?

So, your kid is all grown up and looking to start driving?  You are in the right place, it’s definitely time to start investigating your insurance options.  What is surprising is how expensive it can be to insure teen drivers.

Did you know that auto insurance policies for 16 year-old drivers often cost between 50-100% more than a similar policy on an adult?

How can I save money on Teen Auto Insurance?

So, while you can definitely expect to pay more for a policy on a younger driver, those prices aren’t neccessarily set in stone.  Meaning, you can see quite a bit of fluxuation between different insurance companies.  Waht this means is that it definitely pays to shop around.

You might also want to look at possibly taking out a separate insurance policy for your teen driver.

If both you and your spouse have a good insurance track record so far, it probably makes sense to add your new teenage driver to your insurance policy.  But, if your driving record is less than stellar, or if your policy covers expensive automobiles, then you should definitely look at a separate policy for your teen.

Also, make sure to check back with your insurance company once your teen driver qualifies as an adult.  You often are eligable for a decrease in your policy rates at this time.

Does it matter what kid of car we are insuring?

Yup.  So, if your new teen driver is lucky enough to be getting the present of a new car from you, make sure it is something practical.  They might want something fun and sporty, but that choice will definitely increase your insurance rates.  Also, you will save money on your teen auto inurance policy if you keep the car in your name.  Insruance companies assume that, with the car in your name, you will be more involved and responsible in the choices your teen driver makes.

Also, if your insurance company allows you to assign certain cars to certain drivers (and, be aware, that not all of them do) then you should make sure that your newly insured drive ONLY operates that vehicle.  Otherwise, should your teen driver get involved in an accident in a car they weren’t supposed to be driving, you are going to pay for it in fee increases.

Can my teen’s scholastic record reduce my insurance costs?

Sure enough!  If your teen has a B or above grade average, you can often get a 5-10% discount on the cost of your policy.  Also, you can see further savings of up to 15% if your teen driver completes a driver’s education class.  Check first, though, and make sure the class is recognized by your insurer.

What else should I know about teen auto insurance?

First and foremost, contact your insurer as soon as your teen is ready to get their driver’s permit.  If you don’t, and your teenager is involved in an accident it can negatively affect your rates.

Also, even though it might seem unnecessarily expensive, try not to lower your liability coverage too much.  Teen drivers are definitely higher risk, so if, God forbid, they do get involved in an accident and it was their fault, you don’t want to be paying for all of that out of pocket.

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