How to save money on teen driver’s car insurance
For many teens, a driver’s license represents freedom and greater independence. For parents, a newly licensed teen driver can cause not only significant anxiety but a shocking surge in car insurance costs.
I almost fell to the floor when I opened the first auto insurance bill after adding my 16-year-old daughter to my policy. It was literally double the previous month. I was sure it was a mistake. Maybe I forgot to pay the previous month‘s bill? I immediately called my agent, who couldn’t offer much comfort. It’s correct, he said. Add a teen to your policy and your premium will soar.
“Insurance is all about risk, and rates are based on several factors, including who you are, where you are, what you drive, and how you drive,” says Allie Byers, spokesperson for insurance comparison website The Zebra.
For most carriers, the “who you are” includes age, which is a significant factor in determining a car insurance rate.
“Because teen drivers present a much higher risk than adult drivers, with higher chances of car accidents and fatalities on the road, their car insurance rates will be much higher,” says Byers.
We all have to start somewhere, but given that lack of experience, drivers through age 25 (or their parents) can expect to pay 115 percent more per year than the average driver — $1,667 per six-month policy, versus the US average of $774 — according to research conducted by insurance comparison site, The Zebra.
The good news is that parents and teens have options to save on teen car insurance rates, says Byers who suggests shopping around to start.
“You may find that you could be paying a lot less for the exact same policy or an even better one,” says Byers.
Also, ask your agent to apply