Teenagers and Car Insurance- A Guide on Updating Your Policy
Most parents experience worry when their teens turn “driving age”. Because of their limited driving experience, teen drivers are at a higher risk for accidents. Teens at this age are generally excited and full of adventure. Parents, on the other hand, are concerned with safety and other stressors such as the high cost of insuring a new teen driver.
Did you know that as your teenager gets older, the insurance rates will drop? Well, that’s in the event that he or she has a good driving record. In Charge Debt Solutions breaks down the average cost of car insurance by the age group and how it lowers with more driving experience.
- 16-19 years old, average rate: $2,999
- 20-24 years old, average rate: $2,040
- 25-29 years old, average rate: $1,707
- 30-34 years old, average cost $1,591
- 35-39 years old, average cost $1,610
- 40-44 years old, average cost $1,603
- 45-49 years old, average cost $1,478
- 50-54 years old, average cost $1,284
And so on. Teens that have their own policy, away from their parents, pay higher premiums. In Charge Debt Solutions states that “the average annual rate quoted for a teen driver is $2,267, which includes all liability coverage levels. Compare that to an average cost increase of $621 for adding a teen to the parents’ policy”.
Below is a guide to ensuring that financial liability implications are reduced for adding a teen driver to your car insurance policy.
Contact an Insurance Agent. Before anything, note that an insurance agent can walk you through this new stage in life. An insurance agent can explain the costs involved with insuring a teenage driver.
Get your teen a safe car. Insurers rate car types, including rating those cars for safety. In some cases, insurers will even assign the teen to the most expensive car in the house. It’s best to let the insurance company know the teen is assigned to the least expensive car on the policy.
Talk to Your Teen. Talk to your teen about the relationship between driving a car and the responsibilities that come with it, including insurance costs. Talk to them about safety tips; things like: driving a safe car, safety courses, license programs, the importance of not driving under the influence, and the consequences associated with driving infractions.
The benefits of being a good- responsible student. Many insurance companies offer discounts for students with a B average. There are also discounts for college students who don’t house their cars on campus and who attend classes at a campus 100 miles or more away from home.
Lead by example. Teens learn by example so, lead by example by practicing safe driving. Your teenage driver may imitate you.
