{"id":2731,"date":"2022-09-18T17:20:00","date_gmt":"2022-09-18T17:20:00","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=2731"},"modified":"2023-09-22T15:26:04","modified_gmt":"2023-09-22T15:26:04","slug":"car-insurance-for-teens","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/understanding-auto-insurance\/car-insurance-for-teens\/","title":{"rendered":"Car Insurance for Teens"},"content":{"rendered":"\n
If you have been looking for car insurance for teen drivers, you\u2019ve likely noticed the premiums are higher than they are for adults. Auto insurance<\/a> companies determine premiums based on risk. Teenage drivers are considered riskier than mature drivers, so car insurance premiums are higher.<\/p>\n\n\n\n Insurance agencies view youth as a risk for various reasons. First, young adults don\u2019t have a proven record or much experience. Teenagers are also more likely to text when driving and engage in other distracting behaviors. They are prone to reckless behavior, breaking laws and more likely to get into an accident. Collectively, this age group gets more traffic tickets and gets into more accidents than other age groups.<\/p>\n\n\n\n A note of caution: you typically cannot buy car insurance for someone who does not have a driver\u2019s license (or a learner\u2019s permit).<\/p>\n\n\n\n Rates tend to go down when drivers reach the age of 25<\/a> if they\u2019ve maintained a good driving record, haven\u2019t got caught breaking any laws and had no accidents. Until then, though, you have to find a way to insure your teenage driver. You can add your son or daughter to an existing policy or get a separate policy. Let\u2019s go over some of the questions and answers surrounding finding affordable car insurance premiums for young drivers and see how to find a cheap policy for them.<\/p>\n\n\n\n As a parent, there are benefits to adding your son or daughter to your existing policy. First, you can share vehicles. They will be covered if he or she drives your car, and you\u2019ll be covered if you drive their vehicle.<\/p>\n\n\n\n Also, if they have a vehicle, you can get a multi-car discount. The multi-car discount should lower the premiums significantly.<\/p>\n\n\n\n Your teenager also might be eligible for a Good Student discount if added to a parent policy. Many providers only offer this discount when a youngster is added to a parent\u2019s policy. This discount can also reduce the premiums for high-risk auto insurance.<\/p>\n\n\n\n Your child can also benefit from the perks you\u2019ve earned on your auto insurance. These perks, such as the Good Driver discount, can lower the cost of the parent auto insurance policy.<\/p>\n\n\n\n There are also some drawbacks to consider. First, of course, your auto insurance premium will increase. This is true, even if you get various discounts.<\/p>\n\n\n\n Second, your teenage driver could cause you to lose some of the perks you currently have with car insurance companies. For instance, if you have a Good Driver discount, you could lose it if your child gets in an accident or worse, gets a DUI<\/a><\/p>\n\n\n\n You also have the option of getting a separate auto policy for your son or daughter. If you do this, your child won\u2019t be able to benefit from your plan\u2019s perks. Also, you won\u2019t be eligible for a multi-car discount, and it\u2019s unlikely your son or daughter will get a Good Student discount.<\/p>\n\n\n\n It can also be difficult for them to find a separate auto insurance policy. Many car insurance companies avoid selling these policies because of the risk. However, some companies do offer standalone policies for teens.<\/p>\n\n\n\n Even with the drawbacks, sometimes, it makes financial sense to get separate policies for new teen drivers. If you have multiple moving violations on your record, your premiums have already increased. Adding a teenage driver to your policy could cause your rates to increase to the point of making it impossible to pay. If adding them to your policy will be a financial burden, consider getting a separate policy.<\/p>\n\n\n\n It depends. The average cost of car insurance is $480 per month for a 16 year old, but just as with your policy, there are numerous factors that insurers use to come up with a premium. Let\u2019s explore how an underwriter may come up with a number \u2013 given upfront that these driver policies always start out higher rates just due to the collective driving record of young adults. Stress to your young driver<\/a> that their rates will only decrease if they keep a clean driving record. Tickets and accidents (especially those that result in a claim) will set the process back quite dramatically. Learning safe driving habits now will pay off in the long run.<\/p>\n\n\n\n Obviously, rates at 16 are going to be substantially higher than those at 23. The average cost is $480 per month for a 16-year-old driver, while the rates at 23 average $250 monthly. There are several factors that go into this \u2013 chief among them is a brand new driver is inexperienced, has no driving history for insurers to look at and as a collective, they tend to get into more accidents.<\/p>\n\n\n\n Interestingly, Hawaii and Massachusetts do not allow age to be a factor when determining premiums. However, insurers can get around this by citing a lack of driving history when setting a premium.<\/p>\n\n\n\n It\u2019s not fair, but young male teen drivers (and even older males) tend to pay more for their auto insurance than females. Insurance carriers tend to tip the scales in their favor when issuing policies and they base these decisions on collective driving behavior. Males tend to get in more accidents and drive more recklessly than females.<\/p>\n\n\n\n This trend to punish all male drivers due to the bad behavior of a few may be turning around. California<\/a>, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania<\/a> do not allow gender to be a factor.<\/p>\n\n\n\n Just as with older drivers, the car\u2019s make and model (but not the color) will influence auto insurance rates. A new driver with an expensive sports car is going to raise all sorts of red flags. Not only because car insurance companies might consider it a recipe for disaster, but because the costs for repairing such a car will be more costly.<\/p>\n\n\n\nAdding a Teen to an Existing Auto Policy<\/strong><\/h2>\n\n\n\n
Getting a Separate Policy for a New Teen Driver<\/strong><\/h2>\n\n\n\n
How Much Does Car Insurance for Teen Drivers Cost?<\/h2>\n\n\n\n
The Age of the Driver<\/h3>\n\n\n\n
The Gender of the Driver<\/h3>\n\n\n\n
Car Make and Model<\/h3>\n\n\n\n