Money Smarts Blog
Navigate Teen Car Insurance Without Losing Your Wallet
Aug 8, 2024 || Dasan Hawk, Insurance Sales Agent
Even if your teen follows by all the rules, car insurance can be a significant expense for families with young drivers. The cost of adding a teen to your policy can rise by anywhere from a few hundred to several thousand dollars annually. Generally, we advise expecting your rates to double when adding a first-time teen driver to the policy.
Some factors influencing insurance costs are within your control, while others are based on the objective risk associated with having a teen driver.
Gender: Teenage boys tend to have more accidents than teenage girls, so they cost more to insure.
Residence: Rates are higher where repair costs are higher, or accidents are more frequent.
Grades: Some insurance companies have good student discounts granted to teen drivers who maintain at least a B average or higher. This can reduce rates by 10% to 25%.
Type of vehicle: Pick a safe car. More expensive vehicles, sporty models known for speed, SUVs, and vehicles that perform poorly in crash tests cost more to insure. Also, the year of the vehicle can play a factor as well.
Operator status: Let your insurer know if a teen is going away to college. Rates are often reduced for students attending school at least 100 miles away and who don't have a car on campus.
Insurance coverage and limits: Consider dropping collision and comprehensive insurance coverage on older vehicles. Increasing the deductible can also reduce the premium cost. But beware - then you will pay more if there’s an accident!
Driving record: Teens who get speeding tickets or are involved in accidents will cost more to insure. When that happens, consider moving the teen driver and vehicle to a subsidiary company that specializes in coverage for high-risk drivers.
Navigating the cost of insuring a teen driver can be challenging, but understanding the factors at play can help you manage these expenses more effectively. By staying informed and making strategic choices, you can better balance the financial impact while ensuring your teen is well-protected on the road.
Navigate Teen Car Insurance Without Losing Your Wallet
Aug 8, 2024 || Dasan Hawk, Insurance Sales Agent
Even if your teen follows by all the rules, car insurance can be a significant expense for families with young drivers. The cost of adding a teen to your policy can rise by anywhere from a few hundred to several thousand dollars annually. Generally, we advise expecting your rates to double when adding a first-time teen driver to the policy.
Some factors influencing insurance costs are within your control, while others are based on the objective risk associated with having a teen driver.
Gender: Teenage boys tend to have more accidents than teenage girls, so they cost more to insure.
Residence: Rates are higher where repair costs are higher, or accidents are more frequent.
Grades: Some insurance companies have good student discounts granted to teen drivers who maintain at least a B average or higher. This can reduce rates by 10% to 25%.
Type of vehicle: Pick a safe car. More expensive vehicles, sporty models known for speed, SUVs, and vehicles that perform poorly in crash tests cost more to insure. Also, the year of the vehicle can play a factor as well.
Operator status: Let your insurer know if a teen is going away to college. Rates are often reduced for students attending school at least 100 miles away and who don't have a car on campus.
Insurance coverage and limits: Consider dropping collision and comprehensive insurance coverage on older vehicles. Increasing the deductible can also reduce the premium cost. But beware - then you will pay more if there’s an accident!
Driving record: Teens who get speeding tickets or are involved in accidents will cost more to insure. When that happens, consider moving the teen driver and vehicle to a subsidiary company that specializes in coverage for high-risk drivers.
Navigating the cost of insuring a teen driver can be challenging, but understanding the factors at play can help you manage these expenses more effectively. By staying informed and making strategic choices, you can better balance the financial impact while ensuring your teen is well-protected on the road.
