Car Insurance for Teenagers

Adding teenagers to a family’s car insurance policy can increase the premiums quite a bit. There are ways to save on the policy premiums if you have a teen driver, but the bottom line is that car insurance for teenagers does cost more. Several factors contribute to the cost of insuring a young driver, notably their lack of driving experience and historical evidence that they may not be as responsible as an adult. Teens are involved in a higher number of car accidents with fatal or critical injuries. This statistic translates into higher rates for teenagers.

Ways to Lower the Cost of Car Insurance for Teenagers

Type of Car
One of the ways to control the cost is to make sure the car the teen will be driving is not a sports car. Although many teens want to drive a fast, sporty car, the cost of insuring them can be prohibitive. Keep in mind that the higher the horsepower rating is, the more the insurance premium will be. Choose a vehicle that does not have a high theft rate to help keep premiums low.

Older, heavier cars are not as easy to drive recklessly and therefore are safer and less expensive to insure. For an older car that is paid in full, the consumer has the option of dropping collision and comprehensive insurance and carrying only liability insurance. This will also reduce the rate. And with older cars, the blue book value is lower which also reduces the cost of insurance.

Driving History
Most insurance companies will give substantial discounts for previous good driving. Make sure your teen drives carefully. Avoid insurance claims for minor damage such as bent fenders and encourage your teenager to observe driving rules so as to avoid traffic tickets. Insurance claims and traffic tickets can send rates sky high.

Some states require driver’s education. If a teenager does well in a driver’s education course, some insurance companies may lower the premiums. If your county or state does not require mandatory driver’s education, find a class for the teenager to attend. If the local high school or community college does not offer driver’s education classes, contact the motor vehicle department to find out if they offer classes or can give you a list of places that offer driver’s education classes.

Good Student Discounts
If the teenager has good grades or is on the honor roll, insurance companies will often give you a break on the premiums. Teenagers with good grades or who are on the honor roll tend to be considered more responsible than other teenagers, and will get a lower rate on their premiums.

Family Policy or Separate Policy?
Make sure the teenager understands that he is starting out with a perfectly clean driving record. If the record stays perfect, the insurance rates will come down over time. Some insurance companies will reduce rates each year that the teenager does not have an accident or get a ticket.

Always compare rates and policies before purchasing insurance. Your current insurance policy may be better for you, but may not have the best rates for your teenager. Check around for joint and individual policies as you may find it more affordable to have your teenager on a separate policy.