Learning to drive and getting a car are two huge, exciting steps toward freedom. Seeing your teen behind the wheel can be both a proud and terrifying moment. Accidents happen all the time and you want to keep your young driver safe. It’s also important to make sure they have the right insurance.
Why is Auto Insurance More Expensive for Young Drivers?
Young drivers will typically cost more to insure because they’re more likely to get into an accident. Driving often comes with a lot of trial and error, and insurance companies want to account for that. Crash rates are at their highest during the first year of driving. Young adults between 16 and 24 years old also have the lowest rate of seat-belt usage. Drivers between 16 and 17 have a crash rate of 4.5 times that of drivers ages 30-59.
Should I Add My Teen to My Policy?
Depending on personal preference and financial situation, you can put your teen on your own auto insurance policy. This will likely make your policy much more expensive. If your young driver is old enough and can afford to pay their own insurance, having their own policy is a good way for your teen to build up credit. Then again, as the parent you are still responsible for their actions and accidents if they’re younger than 18. If your child gets in a wreck, you can still be sued on behalf of your child’s actions and your own auto insurance policy may not cover it. It can also be expensive to have your child even on a separate policy.
Are There Auto Insurance Discounts for Young Drivers?
Most insurance companies offer ways to make young driver’s insurance cheaper. These may include:
- Good driver discount: A good driver discount typically applies after five years of clean driving without accidents or traffic violations.
- Good student discount: A good student discount considers your student’s grades in school as a show of responsibility.
- Defensive driving course: If your teen takes a defensive driving course, they may be able to lower their insurance rates and prevent a crash or traffic violation from going on their record, which may have affected their insurance rates.
You’re naturally going to worry but take comfort in finding the right insurance for you and your family. Discuss the options with your insurance agent and have your teen driving safe and insured.