May 14, 2024
Car Insurance for Teens

Car Insurance for Teens 

The day you turn 16 is a big deal, but how will it affect your car insurance rates?

If you're like most teens, the answer to that question is "I don't know." The good news is there are some things parents can do to help their teen save on car insurance. Let's get started!

The first thing I want to talk about is the importance of avoiding accidents and getting into fewer accidents as a teen.

One way to make sure this happens is by learning what causes collisions--and then making sure your teenager avoids those behaviors.

For example, texting while driving or drinking before driving is two common reasons for teenage crashes. Second, it's important for parents to have conversations with their teenagers about safe driving habits.

What are the best car insurance rates for teens?

This is a question we often get asked. The quick answer to this question is that it depends on your driving history, age, and gender.

However, inexperienced drivers pay more than older ones because of the higher risk of accidents and lower credit ratings. Teen drivers are twice as likely to be involved in an accident as adult drivers with six years of experience.

For these reasons, many parents are looking for ways to protect their investments without breaking the bank.

Let us walk you through how we can help find a good-fitting policy for your family's needs so you can keep your child safe on the road while still saving money!

How much does it cost to add a teenager to a car insurance policy?

Oh, much!!
You gotta be kidding!

BUT, they're only a part-time driver!

You might be wondering...

  • "How could it be that much to add a 16-year-old to my car insurance policy?"
  • "You might even be brave enough to ask, what if I got them their own car?"
  • "How much would it cost monthly if my teenager had their own vehicle?"

At this point, you might want to sit down.

Chances are if you are looking to buy a vehicle for the child to drive full-time it will probably cost as much as the car payment, assuming you're getting a car with liability only - "provides coverage for damage or bodily injury to the other party only, up to the limits of the policy."
Even more for "full coverage."

A few ways you might save some money with young drivers.

I know, I know the picture is not getting any better for car insurance with teens.

Do you remember that story about how it costs $200,000 to raise a child by the time they are 18 yrs. old?  Well, this is when the cost accelerates faster than a teenager driving a new car.

Let's Start with How Much is Car Insurance for a 16-Year-Old?

You might be asking at this point, what is the cheapest car insurance for young drivers?

There's a checklist of things Insurance Companies are going to look at when determining rates for young drivers or any driver.

Car insurance for Teens

One of the first things asked.  Are they a boy or girl teen driver?

Girls pay less for a variety of reasons like they are not complete morons, speaking from the male perspective.  Sorry, it's the truth.

Boys think they are Mario Andretti, especially if they play video games, which is generally 99.9% of the male population.

Is the teen driver going to be driving an old car with liability only coverage or a newer vehicle requiring comprehensive and collision insurance? 

Regardless, if you are a teen looking for cheap insurance or not, adding comp and collision coverage generally doubles the cost of insurance, because you'll be repairing or replacing a wrecked or stolen vehicle.

Does the teen driver have good grades? Having a B average or better can save 5% -15% off the cost of car insurance for a young driver in school.

Is the teen driver a full-time or part-time driver?
Having access to a family vehicle on a part-time basis will save more money than if they have access to a car full-time.

A quick way insurance companies will assume full or part-time access is the number of vehicles vs. the number of licensed drivers. Three driver and two cars suggest part-time teen drivers vs. three cars and three drivers equals full-time accessibility.

Tips for Adding a Teenage Driver to Your Car Insurance

#1 rule with most companies is if the driver is still on a learner's permit, then they don't have to be added to the policy. Check with your auto insurance company.
The longer you can keep them in practice mode, the better they will become at driving. Your experience and advice are going to be invaluable over time.
Do you have to add a teenager to car insurance?

When they are fully licensed, in most cases, then you will need to add a teen or young driver to your policy.

 How to find cheap car insurance for new drivers under 21 

Our best advice for getting better car insurance rates for teen drivers is merely shopping around.

You have been with the same insurance company for 20+ years, but that doesn't mean they have competitive rates when you add teenagers to your car policy.
One of the fastest ways to shop is to use an insurance broker

Insurance brokers will compare multiple insurance companies at one time for lower rates with young drivers.

What Not To Do...

The last thing you want to do is strip your coverages down and put yourself at financial risk, to save a couple of bucks.

Young drivers have a high likelihood of having accidents. If you increase your deductible to lower cost, it's just going to cost you more out-of-pocket "when" they have an accident.

If you lowered, your liability limits to reduce the cost of car insurance, you might be putting your family in financial harm if a liability claim exceeds your limits of coverage.

EXAMPLE: $50,000 / $100,000 / $50,000 The first number represents the total amount available to be paid to any "one" person you injury.  "That's probably a couples nights in the hospital."

The second number is the total liability amount payable for "all" people you hurt combined.

The third number is the total property damage the insurance company will be responsible to pay, if you damage any property.

Once your reach the limits of those coverage's the rest is on you to cover out of pocket.

Saving money on car insurance is cool

What's the average cost of car insurance for a teen? 

How does this vary based on the kind of cars in the family?

There are so many variables when it comes to car insurance, especially with multiple drivers in the household. We estimate the average family is paying $300 - $500 for car insurance, assuming young drivers and many vehicles.

What car insurance premium a family pays for auto insurance can vary greatly depending on the year, make and model of cars, what state you reside, age of drivers, what gender, Good student (B average grades or better), multiple policies with the same company, tickets or accidents and so on.

How much will adding a teenager increase my auto insurance rate?

I can tell you from personal experience when my son got his driver's license, we purchased a 16-year-old Honda with liability coverage only and it was $150.00/mo. extra.

If you decide to buy a new driver a car requiring collision and comprehensive coverage you can expect to double that cost per month. Teenage drivers are 3-4 more likely to be involved in an accident within the first three years of driving.

Motor vehicle crashes are the leading cause of death for U.S. teens.

What are some tips for families to save on teen car insurance?

We advise parents to buy a used beater car they know will get used and abused, regardless of how good a student grades. Accidents will happen, especially in a 4,000 lbs. Vehicle and it takes time to learn how to handle driving by yourself.

What are some tips for families to get additional discounts on car insurance?

Ask for any all discounts like good student, multiple car discount, multiple policy discount, driver's education, advance quote discount, and tracking devices that are plugged-in your car or download on a smartphone APP.  Also, a great way to keep tabs on where your teen driver has been driving.

Teen drivers learn bad habits from parents

Teens Pickup Bad Driving Habits from Parents.

 According to an article in CNBC teens are learning bad habits from watching how their parents' driver.  

"Parents who speed, take selfies while behind the wheel, and drive under the influence of alcohol produce teenage drivers who adopt the same bad habits, a new study by Liberty Mutual Insurance suggests.

Almost half of the parents surveyed, 49 percent, admitted to talking on the phone while driving, while 37 percent said they exceed the speed limit by at least 10 mph, the insurer found in a report released Wednesday.

“More surprisingly, parents exhibit dangerous driving habits and frequently do so as often as their teens. In fact, 37 percent of parents are using apps while driving compared to 38 percent of teens,” Liberty Mutual said. “This behavior could be establishing and reinforcing bad behaviors behind the wheel for inexperienced teen drivers.”

Are there some insurance companies that are more "family oriented?" 

Yes, some companies focus on the 50+ community like The Hartford and their AARP partnership and Progressive, which is generally Not very competitive with younger drivers.  You would be better served investigating companies like Progressive, which not offer auto and home insurance package to keep insurance for teens lower.

Finding Affordable Auto Insurance For Teen Drivers is Available If you know where to look

There are many options and ways to lower the cost of car insurance for teens and the the Pro tips above cover ways to save 10% - 30% on auto insurance.  For more information or for rate comparison in your neighborhood click on the link below or call - 314-569-1010

How much is teenage car insurance per month

Car insurance is a hot topic for many parents. They want to know how much it costs, what coverage they need, and whether or not their child's current driving skills will impact the cost.

There are so many questions that arise when you think about car insurance for your teen driver.
What is the cheapest car insurance in my area? Is there a cheaper way to insure than paying monthly?
How do I decide on which type of policy I should purchase?

These are just some of the most common questions asked by parents when considering car insurance for their teenagers. If you're feeling overwhelmed with all these thoughts and don't know where to start, let us help answer some of these questions and give you peace of mind as a parent. Call us to review your needs or receive quotes today.

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Master the Road: Top Safety and Insurance Tips for Teen Drivers

John Espenschied is a long-time veteran of the insurance industry. He's worked with thousands of clients over the years, helping to protect their personal and business needs. John's goal is to provide the best advice possible to assist customers in saving money while protecting their property and securing their financial future.
He truly enjoys helping others and takes great satisfaction in providing top-notch customer service. When he's not working, John has fun spending time with his family, golfing, bike riding, and blogging on insurance topics.