Why Are Teen Drivers So Expensive? Auto Insurance Cost Saving Strategies

Do you have a teen driver in your household? If so, you may have noticed a sharp increase in your auto insurance premium. Teen drivers typically pay much more than older drivers for insurance coverage. That’s the bad news. The good news is that there are steps you can take to save on auto insurance for your teen driver.

Teen Driver Statistics – The Reason Behind the Rates

There’s a good reason that teens pay more for car insurance. They have higher crash rates.

Teens are inexperienced drivers, so it makes sense that they would get into accidents more often. They simply haven’t had time to develop the skills and gain the hands-on knowledge needed to avoid crashes. At the same time, their youth might make them more likely to engage in certain dangerous driving habits, such as distracted driving and speeding.

It’s not just a stereotype, either. The statistics prove that teens really are more likely to crash. They’re also more likely to get traffic tickets.

  • The crash rate for 16-year-old drivers is 3.7 times higher than the crash rate for drivers of all ages.
  • The crash rate for 19-year-old drivers is 2.7 times higher than the crash rate for drivers of all ages.
  • Drivers between the ages of 16 and 19 are more than twice as likely to get a citation than drivers of all ages. 

Auto Insurance Saving Strategies

Although teens in general have high crash rates and get more tickets than older drivers, this does not mean that your teen is an unsafe driver. You can save money on car insurance for your teen. Try these saving strategies:

Look for discounts. Your teen may be eligible for discounts, including good student discounts and discounts for taking driving courses. Talk to your agent to make sure you’re not missing out on any savings.

Compare rates for separate versus family plans. When you get car insurance for your teen, you have two basic options.

  • Option One: You can add the teen to the family policy.
  • Option Two: You can get the teen a separate policy.

Both strategies have advantages and disadvantages. Adding a teen driver to your family plan may be less expensive than having a teen on a separate policy, but the family rate could increase if the teen gets a ticket or causes a crash. Other issues, including the state’s liability laws regarding minors, should also be considered. Talk to your agent about the best strategy. Also discuss special situations, such as if your teen lives in a dorm or with another parent part of the year.

Practice safe driving. Safe driving is the best way to keep insurance costs down. If your teen avoids tickets and crashes, insurance rates will go down. On the other hand, if your teen causes crashes and gets tickets, insurance rates can go up even higher.

  • Follow the rules of the road, including speed limits.
  • Learn about your state’s graduated driver licensing program. These programs place additional restrictions on new teen drivers and may decrease crash rates.
  • Put the phone down. Distracted driving contributes to many crashes.
  • Take a defensive driving course. This could qualify your teen for an insurance discount, too.  

Need a great auto insurance policy for your teen driver? Request a quote.

Sources
  • https://www.dmv.ca.gov/portal/dmv/detail/teenweb/more_btn6/traffic/traffic

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