The day that you, as a parent, have been dreading is finally here. Your little one has out grown of his or her bicycle and is ready to get behind the wheel. This is exciting time for your teenager, yet a very stressful time for you, as a parent. Not only does your child need to now face the challenges of the road, they also need to face the challenge of finding an affordable auto insurance policy. Luckily, while insurance prices for teenagers are often times outrageously expensive, there are still a few ways for you to grab some great savings when it comes to insuring your teen. Continue reading below to find out:
- What is auto insurance for teenagers?
- When should you buy auto insurance for your teen driver?
- The types of auto insurance that are usually required for teenage drivers
- Ways teenage drivers can save lots of money on their otherwise expensive insurance policy
Car Insurance For Teenagers Explained
There are a lot of misconceptions about auto insurance for teenagers. Let’s attempt to clear some of the confusion up. As you may or may not be aware, auto insurance for teens is:
- Required by state law – In most states, you cannot buy a car or even get into the drivers seat of a car without proper insurance coverage.
- Expensive – It is expensive to insure teenagers because they are in a very high risk group and statistically get into more accidents than any other age group (especially males under 18).
- Important – Often times teens don’t understand the importance of insurance. A lot of teens think they are invisible and will never get into a car accident anyways. They just view insurance as another obstacle (or expense) between them and the road. Educate them on why having insurance is important whenever they are behind the wheel.
When Is The Right Time To Get Car Insurance For A Teenager?
Driving for the first time is scary and exciting for both teenagers and parents. But the question of when to get auto insurance for your new teen driver is an important one, that we all must ask ourselves when the time comes. For too many people put off getting insurance for their teenager. New drivers are highly prone to get in a car accident within their first couple years of driving for obvious reasons. This is why it is so important for a new teenage driver to be insured.
Unfortunately, this high tendency of getting into car accidents, whether fender bender or full blown accident, has led to a steep incline in auto insurance rates for this age group. This generally leads to procrastination. The fact is, as an inexperienced driver, it is essential that your teen be insured from the day they get their license.
Insurance Types For Teens
Let’s take a look at the types of insurance available for teenagers. An insurance policy might include one or more of the following types of coverage:
- Liability Coverage – Liability coverage covers the expenses resulting from damages you are responsible for. This includes property damage and personal injury to others. In these days of multi-million dollar insurance settlements, not having liability coverage can easily ruin a family’s life.
- Collision Coverage – Collision coverage covers the cost of repairing damages to your own vehicle. This is the most common type of auto insurance coverage and is required by law in most states. Tip – Choosing a large deductible will lower your collision coverage rates.
- Comprehensive Coverage – Comprehensive coverage covers the expenses resulting from things other than collisions. Common examples of things covered by comprehensive coverage include theft, fire damage, water damage, damage from animals, and natural disasters.
- Medical Coverage – Medical coverage pays the medical costs to you or other parties for accidental injuries resulting from damages done by your automobile.
- Uninsured Motorist Coverage – Having uninsured motorist coverage will protect you in case you are involved in an accident with a driver who has insufficient insurance coverage and is unable to pay for the damage to your vehicle.
Now that you are educated in the basic insurance coverage types for teens, you are probably asking yourself – how much does auto insurance cost for a teenager? Well, unfortunately there is no simple answer to that question. Insurance premiums depend on many things including: the type of car, how often your teen will drive, for what use he/she will drive (why, where to, etc.), and what discounts apply. Often times, teenagers can pay as little as $400 a year for insurance and other times, they can pay over $4000 a year for insurance. It truly all depends. Fortunately, there are a bunch of things you can do to help your teen find the best possible auto insurance rate.
Getting Discounts On Teenage Driver Insurance
Auto insurance rates are based on the amount of risk a company has to take on my insuring the car and its driver in question. Most insurance companies will be pretty uneasy about offering discounts to fresh teen drivers, but as always, shopping around will typically provide you with some satisfying results.
If you read our article about auto insurance discounts, you will see many similarities with the tips below. A majority of the discounts available to adults are also available to teens in one way or another. They are simple ways to reduce risk and build trust with your insurance company, in turn, reducing your premiums.
When it comes to teen drivers, there are seven things that teenagers and parents can do to save money on insurance rates:
- Get under your parents policy – More often than not, it is cheaper to put a teen on their family’s policy than it is to insure them separately. This is an easy and cost effective way to get the large amounts of coverage you may believe your teen needs. Not only will adding them to your current policy reduce paper work and time, but will also allow them to get a much higher level of coverage than they would be able to get with a policy of their own.
- Get good grades – Most insurance companies offer “good student discounts.” All you have to do is maintain a B average and you can get rate deductions up to 25%. This may be more difficult for some, but getting a solid GPA of 3.0 or more can earn you some great discounts. Talk to your teen about this, it may encourage them to improve their grades, especially if they are paying for a portion of their coverage. This is assuming your teen is a full time student. Read more about insurance for college students here and insurance for international students here.
- Get experienced – If teenagers take a driving course, they are eligible for a 10% discount. Call your insurance company to ask for more details. Many states and counties require driver improvement classes to begin with. But if you can get them enrolled in a driver improvement class, you can take a lot of stress off the insurance company, resulting in lower rates; not to mention the stress it will lift off your shoulders.
- Don’t get tickets! – Every ticket and traffic citation teenagers receive will have huge effects on their insurance premiums. After a certain number of citations, some insurance companies can decide to cancel your policy.
- Drive a vehicle that is cheap to insure – Most teens would prefer to drive a flashy sports car, but the fact is, the boring, safer cars are the cheapest to insure. Grandma’s old station wagon might not be such a bad option if you are looking for cheap insurance.
- Make sure you have safety features – Discounts may be available for cars that have automatic seat belts, airbags, anti lock brakes, etc.
- Shop around – Teenage insurance rates can vary by hundreds of dollars. Make sure you shop around to find the best rates possible!
Let’s start with step #7. The 4AutoInsuranceQuote.com quote comparison tool located at the top and bottom of this page is there to help drivers of any age save on their car insurance rates. Enter your zip code to begin comparing rates for teenage car insurance from the top insurance companies in the United States.