Because the risk of a crash is significantly higher for teen drivers, particularly during the first year of driving, your teen’s car insurance rate likely will be higher than your own.
When you add your teen to your auto insurance coverage, your insurance premiums can increase if they get into a car accident. For this reason, you need to ensure your child is insured properly. If you are looking to obtain car insurance for your teen, here are five things you need to know about it:
1. Buy Your Teen a Car That Does Not Cost Too Much to Insure
Some cars very expensive to insure. This is because it is more expensive to repair or replace parts of a luxury vehicle than a late or cheaper model vehicle.
When you visit your insurance company to add your teen to your car insurance policy, you need to assign them a car, meaning you need to tell the insurance agent on which car they would be driving. Sometimes, insurance companies may assign it themselves.
2. Encourage Your Teen to Purchase an Older, Used Car
Encourage your teen to buy an older, used car, as that will lower the insurance cost. Before you buy the car, take it to the mechanic to ensure it does not lack any safety features and the ones it has work properly. You should also advise them to buy a car with good safety ratings.
Insurance companies will charge you a lower insurance premium for cars with a good safety rating. For instance, safety features that can lower the cost of the insurance premium include anti-lock braking systems, airbags, and anti-theft devices.
3. Keep Your Teen on Your Auto Insurance Coverage
You need to keep your teen on your auto insurance coverage if you can. If you have a good auto insurance coverage, it will usually not cost you too much to add your teen to it. Parents trying to teach their teens about taking responsibility can ask them to reimburse them each month by paying their share of the insurance premium.
In the event your child gets into an auto accident, resulting in an increase in your car insurance premium, you can take them off your auto insurance coverage and ask them to purchase their own. However, some states have laws in place that require parents or guardians to cosign for auto insurance coverage even if the teen driver has their own car insurance coverage.
4. Encourage Your Teen to Get Good Grades
You need to encourage your teen to get good grades, as insurance companies offer a student discount to good students. If they get good grades, you will save money on premiums, as it will cost you less to insure them. Since the total amount you save varies from state to state, you will need to check with your state to find out how much discount they offer to teen drivers who get good grades.
Some insurance companies even extend their good student discount program until college. If they do, you will need to show the insurance company proof that your child has maintained a 3.0 grade-point average or higher, made the honor roll, or the dean’s list last semester.
5. Inform the Insurance Company When Your Teen Goes to College without a Car
If your teen is off to college, inform the insurance company, especially if they are not taking their car with them. This will allow you to save money on insurance premiums. If your child goes to college that is more than 100 miles from home with their car, your insurance company will decrease your insurance premiums.
Your auto insurance will continue to cover your teen when they come home from college. You will need to provide the insurance company with proof of enrollment at college. One of the reasons you want to take these steps to lower your insurance premiums on your car insurance is because insuring teens is expensive.
Why is Insuring Teens for Car Insurance More Expensive?
The cost of auto insurance varies from one group of drivers to another because some groups have worse driving records, higher accident rates and more costly accidents than others. In sum, too many distractions, mainly their cell phones, are a substantial factor to why teens are more susceptible to get into a car accident. Other reasons include the type of car they drive, their driving record and traffic violations, and age and credit history.
In terms of gender, women tend to pay less than men for car insurance. The reason women tend to pay less than men is because of the following reasons:
- Men do not wear seat belts as often as women do.
- Men engage in more reckless driving.
- Men are more likely to get into a car accident due to reckless driving and poor driving habits.
- Men are more likely to get pulled over for a DUI.
Safe Driving Tips for Teens
Parents who want to ensure the auto insurance rates they receive are low need to teach their teens tips on driving safely on the roads and obeying all traffic laws. Some tips to tell them include:
- Not using their cell phones while driving such as talking or texting.
- Not listening to music too loudly.
- Not eating or drinking in the car.
- Turning on their headlights to allow other drivers to see them.
- Obey the speed limit.
- Try to drive alone, as the chatter in the car can distract the driver.
- Practice defensive driving such as being aware of the traffic in front of them and next to them, know other routes they can take, remain at least one car length behind the vehicle in front of them in slower speeds, and keep a large buffer zone with higher speeds.
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