If your teen is preparing to get their driver’s license, you may be wondering if you’re going to need to add them to your policy. The answer to that question is yes, you are, and it’s going to be expensive. Buckle up and hold onto your seat, because I’m about to tell you how much it’s going to cost you.
According to the insurance comparison website The Zebra, the average insurance premium for a teenager is $1,838 for a six-month policy or slightly over $300 a month. Male teens are more expensive to insure, so if you’ve got a son it will be approximately $223 more to insure him than it will if you have a daughter.
If you think that’s expensive, remember, it is not the only potential expense you face. On top of worrying about car payments, insurance premiums, gas, and car repairs, you may also end up having to get a lawyer if they cause an accident. Teens between 16 and 19 cause more car accidents than any other age group.
How Your Premium Is Determined
Car insurance is there to back you up financially if you ever get into a wreck. It is also a way to pay other drivers for any damages you cause. The insurance company wants to keep their costs down, so they set monthly fees that are determined by a driver’s level of risk. The more likely you are to be in an accident, the more you’ll pay.
This isn’t what parents want to hear, but the truth is, any time a teenager gets behind the wheel of a car the risk of an accident increases. The insurance companies know it. They charge you more to protect themselves financially. If they don’t charge you enough and you crash your car, it comes directly out of their profits.
Why Teenagers Are Expensive to Insure
Teenagers are just beginning to learn to drive. They don’t always have the judgment and impulse control of mature adults so they are at more risk of an accident. The odds are not in teen drivers’ favor or in their parents’, because your insurance premiums will rise when it happens.
Insurance for teen drivers can be prohibitively expensive, but the law requires it so there’s no way around it. With the amount of money you could potentially save, it’s worth taking the time to learn more about how you can keep your premium down and fight rate increases.
How Your Teen’s Accident Can Affect Your Premium
If your teen crashes, you may be surprised to find that your own insurance premium went up. It was your kid who had the accident, right? Why are they now charging you more for the teenager and for yourself?
Insurance companies assume that your teen has increased the risk of an accident happening in any of your household’s vehicles. The teenager could also borrow your car and cause an accident with that vehicle.
What can you do if your teenager gets into an accident and your premiums become too much for your family’s budget to handle as a result?
- Remove your teen from the list of people who are allowed to drive your car. This will decrease the insurance company’s risk, so they may lower your premium accordingly. Just make sure your kid doesn’t drive your car under any circumstances, or your damages may not be covered.
- Challenge the determination of fault after an accident. You may also be able to stop certain charges from being added to your teen’s driving record. If it is determined that the level of fault for the accident has changed, your premiums may not be as seriously affected.
Taking either of these steps can cause your premiums to be lowered. It may also prevent them from being raised in the first place.
Lowering Your Premium
If your teen’s accident has made it onto their permanent driving record, chances are your insurance premiums are through the roof. All hope is not lost: there are still some other steps you can take to try to reign them in.
Reduce Your Coverage
You may be able to significantly reduce your insurance premiums by reducing your coverage. One way you can do this is by increasing your deductible. You can also try dropping your comprehensive coverage so you don’t present as much of a financial risk. If there is an accident, of course, it will cost you more, but it still may not be equal to your insurance premium savings.
Ask For a Lower Rate
If you have a good driving record and you’ve been with your insurance policy for a long time, try asking for a lower rate. The company may work with you on this despite your teen’s less-than-reliable record. Your company may offer you a discount if you threaten to find a new insurance provider. A competing company that wants your business may also offer you discounts.
Ask For Forgiveness
You may also be able to get your insurance company to forgive your teen’s accident if they’ve been driving for long enough, you may also have the opportunity to have their accident forgiven. They could also have their rate lowered if their safety record has improved since the accident. Prove to the company that your teen has worked to become a better driver.
Encouraging Good Driving Habits
Whether your teen has had an accident or if you’re worried it could happen, it’s never too late to help your teen develop safe driving habits. Signing your kid up for a defensive driving class will prepare them for challenging conditions on the road and show your insurance company you’re serious about safety.
Also, think critically about the example you give your teen when you’re driving. You may feel like you’re an experienced enough driver that it’s no big deal if you talk on the phone while you drive. The truth is, this is unsafe for you, your teen, and everyone else on the road.
When a teen driver is in violation of any of the provisional codes in the driving handbook, they may end up being the defendant in a personal injury lawsuit. What this means is your insurance will be responsible for paying the damages. For more information click here for a no-obligation consultation with an accident attorney.
Take the time to raise a safe, conscientious driver and make sure they’re prepared for everything that can go wrong on the road. You could end up with more affordable insurance premiums. Even more important, however, is the fact that your child will be safer.
