How to Find the Cheapest Car Insurance for Teens
So your teen is ready to get behind the wheel, but you may not be ready for the shocker that’s in store when adding a young driver to your auto insurance policy. You may want to get a head start in your search for the cheapest car insurance for teens so you’re prepared for the cost, as well as have some savings tricks up your sleeve.
The main question you will want t the answer to is “How much will young driver insurance cost me?” The answer is insuring teen driver will set their parents back about $1,500 a year on average.
Fortunately, there are a number of ways to get the cheapest auto insurance for teens. If you shop around for the best rates and look for teen driver discounts, you should be able to get your teen on the road without breaking the bank, and we’re sure you’d like to have that money available for something else.
Why Teens Drive Up the Cost of Car Insurance
It’s pricy to add your teen to your policy because drivers in that age group are riskier to insure. In fact, teen drivers have three times as many accidents as drivers 20 and older, according to the Insurance Institute for Highway Safety. These are statistics that both you and your insurer of choice will have to reckon with.
Here are some of the factors that are likely to lead to teen driver crashes. Most are preventable:
When you’re new to something, you are more likely to make mistakes. It’s as simple as that. Your teen must be aware of the responsibility they have to themselves, their family, and other drivers, because errors on the road can be costly and life-changing. Make sure the young driver of the house has a safe vehicle to drive and their head in the right place.
Young drivers may not understand the consequences of their actions as well as adults do. This means something as simple as going a few miles an hour over the speed limit can have very different outcomes depending on your age. Some teenagers also get cars that are built to thrill, which may increase the risk of accident even more.
Distractions can also play a serious role in driving safely. When there are other teen passengers in the car, there can be conversations, selfies, dancing, you name it… we’ve heard it all. It is very exciting to gain the freedom of movement, but no car parties please. Many states have even imposed laws on the number of passengers a teen driver is allowed to carry.
For teen drivers getting their driver license is one of the first steps into the adult world. Unfortunately, the second is usually alcohol consumption. When the two mix, it can have potentially devastating consequences. Have the talk with your kids so they know what they are risking.
The road is full of unexpected surprises. Due to lack of visibility, many of the worst accidents happen at night. Tell your teen to take it easy on the gas pedal and be extra careful at intersections and on the highway.
Fortunately, many states require graduated driver licensing programs for teens, which can help reduce the risk of crashes. Teen driving safety increases when teens get driving permits at age 16 or older, receive 70 or more hours of supervised driving instruction, and gradually get more driving privileges as they gain experience on the road.
Finding the Cheapest Car Insurance for Teens
As a parent, it pays to think not only about keeping your teen safe on the road but also about keeping your car insurance costs down. Here are six ways to get the cheapest car insurance for teens:
Shop around. When adding your teen to your policy, it’s smart to get quotes from multiple insurers even if you’ve been with the same company for years. One way to shop around is by getting online insurance quotes for teens. Or, an independent agent or broker can shop multiple insurers for you, says Keith Balsiger, president of Balsiger Insurance, an insurance agency with three locations in Nevada. Rates for teen drivers definitely vary by insurer, he says.
Tie car privileges to good grades. Many insurers offer good student discounts, usually for kids who have a solid A or B average on their report card. If your child makes straight As, you’re in luck. If not, it might pay off to encourage your teen to study harder before you hand over the car keys. A good student discount could shave 25 percent off the base rate for young drivers, Balsiger says.
Have your teen take a safe driving class. In addition to giving you a little more peace of mind, enrolling your child in a defensive driving class could lower your auto insurance costs. For example, Nationwide offers discounts for completion of defensive driver training. And Liberty Mutual offers discounts for parents of teens who complete online teen driving course called teenSMART, which cuts the risk of getting into a collision by 30 percent.
Don’t let your kid drive the expensive car. One way to save money on insurance is to have your kid drive a safe, sensible used car rather than handing over the keys to your shiny luxury sedan. However, insurers don’t want to be told the kid is driving the beat-up Corolla wagon when he’s mostly behind the wheel of the new Mercedes convertible. So, some insurers blend the rate across all vehicles in the household, while others assign the youthful driver to the most expensive vehicle the family owns, Balsiger says. “What you want to do is find a carrier that rates the teen driver on the vehicle they actually drive the most,” he says.
Consider a policy with accident forgiveness. It’s not uncommon for teens to have an accident, even if it’s just a run-in with the neighbor’s mailbox, while they’re getting comfortable behind the wheel. A collision can increase your rates by 30 percent, according to Nationwide. However, if you get a policy with accident forgiveness, the first accident will not hike your rates.
Make your kid sign a contract. Making sure your teen drives safely is important both for your peace of mind as a parent and your insurance rates. If your policy doesn’t have accident forgiveness and your teen has an accident, your rates will rise. And a violation like speeding or a DUI also may cause your rates to spike. Teach your teen about safe driving practices like not giving rides to groups of friends and putting the phone away while driving. Consider getting a safe driving commitment from your kid in writing. Liberty Mutual offers a teen driving contract you can print out for your teen to sign.
Look at what wider discounts are available as a family. We’ve put together the ultimate set of tips to find cheap car insurance to help you along the way. Many insurers offer military discounts, and others that you will be able to apply to a multi-car family policy.
Following these tips to get the cheapest car insurance for teens should help you teach your teen the rules of the road without having to pay a fortune in car insurance costs.