It is no secret that automobile insurance for teenagers can be expensive. Compared to their adult counterparts, insurance rates for male teenage drivers can be more than 200 percent higher. The premiums can increase even more when a teenager driver purchases their own policy.

There are options, discounts and special circumstances that can lower the expense. More than likely, your insurance company already has your son or daughter’s birthday on file and will reach out to you when your teenager is near driving age.

Be proactive and contact your insurance agent when your teenager obtains their learner’s permit. This will give you the time necessary to consider your options and compare rates, terms, and options. Your teenager may be covered by your automobile policy automatically while they have a learner’s permit, but they will need to be added to your policy once they receive their driver’s license.

 

Determining the Premium

 

Age and experience are important factors when an insurance company determines insurance premiums. This means adding a teenager will increase your rate between 100 and 200 percent. There is a wide variation in the rates charged by different insurance companies. This is where asking about discounts is critical. Every insurance company is different, and some may not tell you about available discounts unless you ask. This is where working with an independent agent can be beneficial.

The least expensive way to insure your teenager is to add them to your policy. This will not be cheap, but some insurance carriers offer better rates for teenagers which may require shopping your coverage too.

The average increase for a female teenage driver is about 129 percent, while the average increase for adding a male teenager is 176 percent. The reasoning behind the higher rates is simple. Teenagers are four times more likely to be involved in at-fault accidents than older adults. And the specific age of your teenager matters too, as a sixteen-year-old has twice the number of accidents than an eighteen or nineteen-year-old driver.

 

Covering the Basics

 

Your premium may not be the only change to your policy when adding a teenage driver. Review with your agent possible changes in your minimum and maximum coverages and full details on other limits and terms.

If your teenager will be obtaining their own insurance policy, you will have the option to obtain different limits, other than your policy. It may be tempting to reduce the limits on your teenager’s policy, but this is not recommended, especially considering the higher likelihood of them causing an accident. Take your time and review all your options. Keep in mind that if your teenager intends to purchase their own policy, you may have to co-sign.

 

Discounts for Teenagers

 

When you talk to your insurance agent, insist on reviewing every single discount you are entitled to receive. Common discounts specifically for teenagers include:

• Good driver
• Good student
• College student
• Defensive driver

A good student discount is often available if the teenager has roughly a B average or higher. This can save you as much as $263 every year, or generally between 15 and 35 percent.

Defensive driving discounts may also be available by enrolling your teenager in a defensive driving course. This course exceeds the minimum training and education required by most states. Driver improvement classes can provide you with a discount between 10 and 15 percent.

If your teenager is away from home attending college, without their own vehicle, you may qualify for 5 to 10 percent off the premium. And if your teenager keeps their record free of violations or accidents, they may qualify for a good driver discount. It is important to note discounts can only go so far, and there will be a point where your rate cannot be lowered any further.

 

Additional Premium Relief

 

Raising your deductible will lower your premium but would subject you to higher out of pocket expenses if your teenager does indeed have an accident. The type of vehicle assigned to your teenage driver makes a difference too. The safer the vehicle will mean a less costly repair, this will inevitably lower the rate. Additionally, if the car is not being financed and you wish to self-insure damage to the vehicle, you can drop your collision and otc (other-than-collision) coverage.

New to the insurance industry is installing a telematics device. These electronic devices install easily into the vehicle’s computer and monitors driving habits which also decrease the cost of the policy. Lastly, and likely not a popular choice from your teenager’s perspective, is to delay your child’s license until they turn 18.

To learn more about automobile insurance solutions for you and your teenager, contact our team at www.protectiveagency.com  or Call (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.