Finding affordable car insurance is challenging for anyone, but finding it for a teen driver can be a daunting task. Teenagers pose a high risk to insurance companies, so they cost more to insure. Depending on factors such as where you live and your family’s combined driving record, the cost of insuring a car for a teenaged driver can range from $1,000 to over $20,000 per year.
Of course, there are good reasons for these high premiums. Teenagers are involved in three times as many accidents per mile driven as those 20 and older, and their accidents tend to be more severe. According to the Insurance Institute for Highway Safety Loss Data Institute, teenagers are involved in three times as many fatal accidents as those in their early 20s. Younger drivers pose the greatest risk: A 16 to 17 year old is twice as likely to be killed in a car crash as an 18 to 19 year-old.
Nonetheless, there are some ways to improve your chances of finding affordable car insurance for your teen. Here are a few tips from the experts at Carmoon Group:
Add Your Teen to Your Policy
In most cases, adding your teenager to your existing policy will yield the most affordable car insurance rates. According to a NerdWallet study, covering all cars under a single policy saves U.S. families an average of about $3,400 per year. Many insurers also offer a multi-car discount, and some extend your family’s earned discounts (such a Good Driver discounts) to your teenager as well.
Our insurance agents can help guide you towards companies that offer the most affordable car insurance rates, but it’s also a good idea to shop around on your own. Premiums, discounts and other perks vary considerably. For example, many insurers offer Good Student discounts, but the amount of the discount can vary by up to 15 percent. On an annual premium of $2,000, that’s $300 per year.
Get Your Teen a Safe Car
Safer cars equal less risk, so getting your teen a slightly pricier car can buy you more affordable car insurance and lower your overall costs. Late model cars have more built-in safety features, which may earn you an additional discount as well.
If you can’t budget for a new car, choose an older model from this list of Good and Best Choices for Teens from the Insurance Institute for Highway Safety.
Set Ground Rules
Let your teen know that you expect him to earn the most affordable car insurance by following certain rules. The ground rules for driving should include:
- Get good grades
Teenagers who maintain at least a B average are about 30 percent less likely to get in an accident during their first year of driving than those with lower grades.
- Stay sober
According to the National Transportation Highway Safety Administration, car crashes are the leading cause of death in teenagers, and about one in four of those involve an underage drinker. It’s not surprising, then, that a DUI conviction can raise the average insurance premium for a teenager by about $2,400 per year.
- Don’t speed
A single speeding ticket can increase a teen’s insurance rates by much more than it would an adults. According to one estimate, getting caught driving just 15 mph over the speed limit can raise a teen’s insurance rates by nearly $700 per year.
- Attend a certified driving course
Teens who take a certified driver’s training course are safer drivers. According to a 2015 study from the University of Nebraska, they are:
- 40 percent less likely to get a ticket
- 15 percent less likely to be involved in an accident
- 20 percent less likely to be involved in an accident that resulted in serious injury or death.
Some insurers offer discounts to young drivers who have completed a certified training or Driver’s Education course.
- Pay attention to the road
Distracted driving is a growing menace on U.S. roads. According to the U.S. Centers for Disease Control and Prevention, eight Americans are killed and over 1,100 are seriously injured every day due to distracted driving. A disproportionate number of those killed are teens.
Finding affordable car insurance for you and your family doesn’t have to be an impossible task. Let our car insurance specialists help you find the best policy for your budget and your needs. Call us today at 516-292-3780 to schedule an appointment: We’re here every weekday from 9 a.m. to 6 p.m. Or if you prefer, request a free consultation online now and we’ll get back to you within one business day.