Teen Drivers and Families: How to Keep Premiums Affordable
Having a teen start driving is an exciting milestone for parents, but it can also bring significant financial stress. Teen driver insurance is notoriously expensive, and adding your child to your family car insurance could seriously impact your budget.
However, there are ways to find affordable auto insurance for teens so that you can hand over the keys without unneeded financial stress. By using a few key auto insurance tips, you can give your teen freedom and independence on the road while keeping your wallet happy.
Understanding Teen Driver Insurance Costs
Everyone knows that teen driver insurance is expensive. But why? Ultimately, it comes down to risk. Teen insurance rates are so high because teenagers are one of the most costly groups to insure.
Risk Factors That Increase Premiums
Insurers consider many factors when determining your auto premiums. That includes the driver’s age and experience level. Because teenagers are just learning, they may not know what to do in certain situations on the road, which can lead to accidents.
Teens are also more likely than adults to make risky choices, putting them in potentially dangerous circumstances on the road. All of these risks increase the likelihood of a claim, resulting in higher young driver insurance rates.
Strategies To Lower Teen Driver Insurance Costs
Luckily, there are several ways you can reduce teen auto premiums and save your family money. While your teen can’t change their age or their level of experience, they can control other risk factors.
Good Student and Safe Driver Discounts
Insurers often provide discounts for students with good grades. If they can demonstrate their academic responsibility, they’re also likely to be more responsible on the road. By submitting a sound report card and attendance record to your insurer, you could get significant good student insurance cost savings for your teenager.
Your teen’s driving habits can also positively impact your rates. By driving safely — no speeding or phone use behind the wheel —teens can access lower rates over time.
Adding Teens to a Family Policy
When your child starts driving, you can save money by adding them to the family car insurance instead of getting an individual policy. Most insurers offer multi-car discounts for families with multiple vehicles and drivers. You’ll be able to get the same coverage at a lower price by bundling your teenager’s policy with the rest of the family.
Choosing the Right Vehicle for Safety
The car your teen drives also significantly affects your coverage costs. Simply put, expensive cars are more costly to repair. Getting your teen an affordable car with low repair costs can decrease their risk profile and lower their premiums.
You should also consider the safety rating of your teen’s car. Insurers often offer discounts for vehicles with certain safety features, and they’ll offer lower rates for cars with better safety records. This not only helps save money but also could help protect your child in the event of an accident.
Encouraging Safe Driving Habits
Educating your teenager and taking an active role in their driving journey is the best way to maximize safe teen driving discounts. There are multiple ways to keep your kid on the right track once they get their license.
Driver Education Programs
When it comes to driver’s ed, laws vary from state to state. Regardless of the requirements in your area, having your teen take extensive driver education courses is a great way to set them up for success. They’ll be able to practice common scenarios, get more experience behind the wheel, and become more confident on the road.
Usage-Based Insurance Options
Usage-based insurance tools monitor your driving and calculate your rate based on how you drive and how much you drive. Using these tools can help encourage safe driving habits, provide insight into your teenager’s behavior behind the wheel, and discourage distracted driving. If your teen drives safely, they can also save you money.
Monitoring and Communication
It can be helpful to set up a monitoring system to keep an eye on your teen driver. There are many apps available that allow parents to learn about where their teens are driving and how they behave on the road. It’s essential to have an open discussion with your teenager about balancing the freedom to drive with safety and communication.
Protect Your Teen Driver and Save With Freeway
Finding ways to save on coverage can make a huge difference when your child starts to drive. By teaching your kid safe driving habits, taking advantage of discount programs, and making safety your number one priority, you can get the lowest rates possible for your teen.
As a parent, you want your teen to feel safe and confident behind the wheel. Freeway Insurance offers affordable plans for families with teenagers, so you don’t have to skimp on coverage to get a dependable policy. If your child is about to start their driving journey, it’s time to reach out. Get a free quote online, call (800) 777-5620, or visit a local Freeway to find a budget-friendly plan for your young driver today.
FAQs
Want to learn more about how to get the most affordable young driver coverage? Here are the answers to some common questions parents have asked about policies for their teenage drivers.
At What Age Should I Add My Teen to the Insurance Policy?
You should add your teenager to your auto policy as soon as they get their license and start driving independently. Because teens can begin moving at different ages, it depends on their individual timelines. Depending on the state, teens can get their permits between the ages of 14 and 16, and they can get fully licensed from 16 to 18.
Additionally, you should inform your insurer when your teenager gets their initial learner’s permit. You typically don’t need insurance when you’re teaching your teen how to drive, but you should still inform your insurer once they get their learner’s permit. This can protect you and your child if they’re involved in an accident while practicing.
How Much Can Safe Driving Discounts Lower Premiums?
Safe driving discounts can decrease your premiums by 10% to 40%. Each insurer has its own discount programs, so it’s essential to ask how your driving habits and history could affect your rate. Some insurers calculate this amount based solely on your history of claims, accidents, and tickets. Others will use telematics devices to determine driver safety rating based on the speed limits, braking, cornering, phone use, and other behaviors.
Are Teen Drivers Covered on All Family Vehicles?
Typically, teenage motorists will be covered for all of the cars listed on your family plan. This is because people in the same household often share the same vehicles. However, in some situations, you may be able to restrict their coverage to specific cars. It’s important to discuss the details of your coverage with your insurer to make sure your teen is fully covered, regardless of which car they drive.
Does Location Affect Teen Insurance Rates?
Your location can significantly affect your teen driver’s premiums. This is because the cost of a claim is directly related to the cost of living in your area. More expensive zip codes usually have higher premiums for motorists of all ages. Additionally, some places simply have higher rates of accidents, theft, and other situations that could result in a claim. These locations will also have risk-based premium hikes.
Will My Premium Go Up If My Teen Is in an Accident?
In most cases, your auto premium will increase if your teen gets into a car accident. However, many auto insurance companies offer accident forgiveness, which can keep your rates from going up. Your rate increase also depends on who caused the accident. If your teen wasn’t at fault, that could prevent a significant rate increase.
