Your Teen Driver and Insurance

Why is Your Teen Driver More Expensive or Hard to Insure

There are many factors that go into the cost of insuring a teen driver. Arthur Goodwin, senior research associate at the Highway Safety Research Center at the University of North Carolina, says that young drivers cost more to insure largely because they are inexperienced and have higher accident rates than more seasoned drivers.

Stand-Alone Policies

It can be expensive to purchase a stand-alone policy for your young driver. Teenagers have a higher risk of collision because of a lack of driving experience. This is a huge factor in their premium, even though they often drive fewer miles than adults. Here’s why adding a teen driver to your existing policy is almost always far less expensive:

  • Affordability. Your young driver will reap the benefits that you gained as a long-term driver with a clean driving record and a credit history that has been established.
  • Control. Since you are already monitoring the policy, it’s easy to add and update coverage to ensure that your teen driver and their vehicle have the proper protection.
  • Flexibility. If you have multiple vehicles in your household, your teen will be covered by insurance when driving your car and vice/versa.
  • Convenience. You’ll only have one policy to monitor.
  • Protecting Your Assets. Most importantly, a vehicle operated by your teen driver but registered to you, needs to be insured on a policy in your name.

What is the best way for a young driver to lower their premium?

Young drivers have unproven records and are far more likely to drive distracted. Teens pose a financial risk for insurance companies, but there are methods to lower the premiums. To keep insurance premiums down, maintaining a clean driving record is crucial for young drivers. A single incident or traffic ticket can cause insurance for a teen driver to spike, causing an already costly premium to soar. Other methods for keeping premiums low is to use discounts for good students, a company’s driving app, safety features or full payment. Not all insurance companies offer the same discounts, so it’s important to talk to your agent about what will work best for you and your family.

How to Lower Your Auto Insurance Premium

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Separate Policies

If you decide your teenager should have their own policy, here are some things to keep in mind:

  • Ensure the right amount of liability. Choose a liability limit that will safeguard your assets. You are held liable if your teen driver caused damages or injuries to someone else.
  • Select affordable deductibles. You should make certain your teenager can pay the deductible amount out of pocket in case of a claim. This will come in handy if they are financially responsible for their own policy.
  • Physical damage coverage may not be necessary. If the vehicle on your teen’s policy is paid off, comprehensive and collision coverage may not be necessary. It may not be worth paying for one or both on an older vehicle worth less than a few thousand dollars.
  • Protecting Your Assets. Most importantly, a vehicle operated by your teen driver but registered to you, needs to be insured on a policy in your name.

How Much Car Insurance Is Enough?

 

Questions? Want to learn more? Here’s 4 easy ways to reach us:

Phone: 877-994-6787
Email: insure@siaonline.com
Text: 951-482-8144
Web: www.siaonline.com

PS Here’s a few words from one mother of teens that trusts Stromsoe Insurance Agency:
“I’ve had several other insurance coverage in the past, but I was never treated with such friendly personal service as with Stromsoe Insurance Agency. Everyone in the office is ready to take time with me and my family, always finding the best coverage for our needs, even with our teenagers.”
Rick and Diane Royer – Fallbrook, CA – Client Since 1988

PPS Every policy is backed by our iron clad, 100% complete satisfaction guarantee. Ask for your copy today!

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