How to decide on the correct car insurance on your teenage driver – Bankrate.com
When choosing the right car insurance for your teenage driver, you should first seek quotes from various providers. This allows you to compare discounts and prices on the same coverage to get the best rates for an inexperienced driver. While it can be expensive to insure a teenage driver, choosing the right auto insurance can help you maximize the savings and reduce the stress of paying a heavy insurance bill.
Why is car insurance more expensive for teenagers?
Young drivers are one of the most expensive insurances because, due to their inexperience behind the wheel, they are more likely to cause an accident that leads to a claim report and the insurance company to pay out money. When a 16 year old driver is added to his parents' policy, the average pay increase is $ 2,531 per year. Adding a 17-year-old driver increases the cost by an average of $ 2,376 per year.
As your teen gets experience and gets older, prices should come down – as long as they keep a clean driving report.
Insure your young driver
It is a good idea to call your insurance company when your teen gets their study permit. You shouldn't have to add them to your policy and pay to have them insured until they get their driver's license and they are insured with their permission to drive. This depends on the insurance company as well as the state you live in – but in general it should be.
It is almost always cheaper to add a teenage driver to a parent's policy than to give them their own policy. If you buy a car in their name only, you may need to get a separate policy for them. If so, you should take out insurance with the same provider to benefit from discounts on multiple policies.
What should I look for in a transport company if I have a teenage driver?
When looking for a transportation company with a teenage driver, look for discounts and endorsements that are specifically made for teenagers. These insurance companies usually offer better rates for teen drivers than insurers that don't offer youth-specific discounts and features.
There are various discounts for young people, including:
- Distance student: This discount is reserved for college-age drivers. Teens and young adults attending college at least 100 miles from home and not bringing a car can receive this discount. The student is still insured if he drives a car when he is at home for vacation or other reasons.
- Driver training: Some states and airlines may allow teenagers to take driver training courses for a discount. The aim of the training is to make them more attentive at the wheel and to avoid behavior that could lead to tickets and accidents.
- Good student: This potential discount rewards teenagers and young adults with good grades. A full-time high school or college student may be able to get and keep a good student discount as long as they adhere to a certain GPA in school.
- Low mileage: If your teen doesn't drive a lot of miles, you might be able to get this discount. Each carrier has their own low mileage limit, but if your car is driven less than the limit, you can save on your auto insurance. Some companies also offer pay-per-mile insurance.
Ways to Save When You Have a Young Driver
If you have a teenage driver, the increased cost of insurance can be high. If you are looking for savings, you can get a teenage driver insured with the best coverage at an affordable price.
Consider usage-based insurance
Some companies offer usage-based insurance or telematics for drivers who want to save on insurance. In usage-based insurance, the insurance company tracks the user's driving habits through a device connected to the car or a mobile app. Most companies offer an initial discount so they can track usage and then adjust your premium based on your driving habits. This method is also a great way for you to track your teenagers as they drive to see if they are responsible for the driving.
Choose your car wisely
The type of car you drive affects your auto insurance premium and can make a significant difference in insuring a teenage driver. If you are looking for a new car for your teen, consider a used one instead. Used cars may be cheaper to insure and you may be able to save even more if you don't need comprehensive insurance.
Check coverage options
Removing unnecessary covers can help you save on adding a teenage driver. If you have an older used car, you may not need fully comprehensive insurance. For newer cars or if you still want to keep full coverage, increasing the excess is another way to save. If you have more than one car in the family, consider paying extra for insurance such as rental car reimbursement.
You should also consider the limits of liability you have and whether you need to increase them. While it can increase the premium, higher liability limits can help protect your finances if your teen causes an accident resulting in injury or property damage.
Discuss habits with your teen
When teenagers get their license, they have to stick to new responsibilities. Discuss with your teen how their habits can affect them and others. Being a good driver can help them avoid tickets and accidents, which helps keep everyone safe and allows you to keep discounts on the policy. For example, if your teen qualifies for the great student discount, let them know how much they are saving and the importance of keeping high grades.
frequently asked Questions
What's the cheapest way to get auto insurance for a teenager?
The cheapest way to get auto insurance for a teen is to add it to their parents' policy rather than getting your own. Giving you an older car to drive and shopping for the best prices are other ways to save.
Should I insure my young driver?
If your young driver lives with you, you will need to have them insured or have their own policy. Automobiles and insurance companies are electronically linked so the company knows the teen is licensed and includes them on the policy if you don't.
At what age does the motor insurance end?
For teenage drivers who are getting older every year, you should see car insurance rates go down as long as they have a clean driving record. With most insurance companies, the motor insurance ends at the age of 25.