What Every Parent Should Know About Teen Car Insurance

Handing over the car keys to your teen can be anxiety-inducing, to be honest.  Before you start stressing about curfews or fender benders, though, for most families there is more pressing issue: teen auto insurance.

Statistically, teen drivers are more prone to speed, drive distracted, and cause accidents, which makes insuring them more costly.  But don’t worry; there are sensible ways to keep your young driver protected without going over your budget.

The High Cost of Teen Car Insurance

Insurers set prices on risk; young drivers are deemed high-risk because of their inexperience.  A 16-year-old’s own auto insurance coverage could really be far more expensive than a 21-year-old’s.

The encouraging news?  A clean driving record and age usually help rates to fall.  Data from Progressive shows that the average rate drops by 8% at age 19 and another 6% at 21.

Your Best Bet: Include Them in Your Policy

Usually, adding your teen to your current plan is more affordable and practical than obtaining them a separate coverage.  Here is the reason:

• Your teen falls under your present coverage limits.
• Policy Benefits: Your cheaper rates and driving record help them.
• One-Policy Simplicity: One bill, simple updates, and total control under one roof.

How Much Does Adding a Teen Driver Cost?

Exact figures differ by area, vehicle kind, and driving record, but adding a juvenile driver to your coverage is usually far cheaper than putting them on a different plan.  Keep in mind, though, a separate policy might be interesting if you drive a high-value vehicle your youngster won’t touch.

Ways to Reduce Teen Car Insurance

Though expensive, young driver’s insurance offers a number of discounts and tips to help you save money:

• Good Student Discount: In many states, teenagers with a B average or better might qualify for roughly 5% discount.
• Multi-Car Discount: Have several cars? Including your teen’s automobile can help you to qualify for a discount.
• Insurers like as Progressive provide discounts for regularly insured parents with young drivers.
• Enroll your teen in programs such as Progressive’s Snapshot®, which tracks driving patterns and rewards safe conduct (plus, it helps monitor for distracted driving).

Peace of Mind, Control & Flexibility

Keeping your teen on your policy not only saves you money but also guarantees their complete safety.  They will have access to all cars included on the policy and gain from optional coverages such as rental car reimbursement and roadside help.

Last Advice: Avoid Underinsuring Liability Coverage

Teens are more prone to get in accidents, so you may want to raise your liability limits to guarantee your valuables are safeguarded.  In the case of a major lawsuit, this tiny change might have a significant impact.

Teen auto insurance doesn’t have to be a financial disaster.  The correct strategy—including them to your coverage, optimizing discounts, and keeping excellent driving practices—will help you to keep your adolescent safe on the road without destroying your budget.

Unsure which choices are best for you?  Talk to your insurance provider or request a tailored estimate to see what best fits your family.