Adding a young driver to the family car insurance policy can cost parents double their annual premium rate. This isn’t the case for every insurance rate, but there are some factors that can cause parents to pay more for their car insurance. For example, male teens are likely to cost more than female teens. It depends where you live, though. Gender does not affect the rates in six states, namely: Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.
A driver’s age can also affect the rate. The younger the driver, the higher the insurance rate can be for parents. Why do insurance companies charge a higher rate for young drivers? It boils down to experience. Young drivers don’t have the experience older drivers do, and younger drivers have yet to prove that they are responsible or reliable. Insurance companies see young drivers as risky, hence the costly premiums.
Motor vehicle accident statistics involving teen drivers
According to the Centers for Disease Control and Prevention (CDC), motor vehicle crashes are the leading cause of death for American teens. In 2011, about 2,650 teens ages 16 to 19 were killed while 292,000 received treatment for injuries. This means that seven young drivers die every day from motor vehicle injuries, stated the CDC. Drivers between 16 to 19-years-old were found to have the highest risk for motor vehicle crashes. This age group is nearly three times more likely than those aged 20 and older to be involved in a fatal crash.
Ways to lower insurance for young drivers
|There are ways you can save on your family car insurance policy despite adding your teen driver. First, encourage them to do well in school. Insurance companies usually offer discounts to students earning good grades. The amount of discount varies, so make sure to coordinate with your insurance company and inquire about options you have to lower the premium rate. You may also ask you agent if your insurance company is offering driver safety courses. These safety courses are offered to teach young drivers rules on the road and help them improve their driving skills. Your teen may be eligible to a discount once they complete the program or any formal driver’s education class.
If you’re thinking about getting a car for your teen, either new or used, check with your agent to see how this purchase would impact your insurance premium. Unlike old models, new car models have advanced safety features such as anti-theft devices, blind spot detection and more airbags. These safety features could pull your insurance costs down.
As a Kentucky Accident Attorney, I also suggest talking to your young driver about installing a monitoring device in their car. This way, you’d be able to track their driving behavior and might also earn a discount on your insurance premium. Every little bit helps, right? More than saving, it will also ensure you that your teen driver is safe. That’s ultimately what’s important.