This is a major pinch point in a family's monthly budget. Here is how to keep the increase manageable.
This topic can be a major pinch point in a family's monthly budget. I can help.
The risk of motor vehicle crashes is higher among teens aged 16–19 than among any other age group. Per mile driven, teen drivers in this age group are nearly three times as likely as drivers aged 20 or older to be in a fatal crash. The presence of other teens or young adult passengers increases this risk.
What factors contribute to these high risks?
- Inexperience
- Nighttime and weekend driving
- Not using seat belts
- Distracted driving
- Speeding
- Alcohol and/or drug use
When should I add my teenage driver?
This can vary by carrier, so check with them to confirm, but generally the rule of thumb is the day your teenager gets licensed.
What can you do to minimize your premium increase?
- Driver safety course. In many states teenage drivers are required to take a driver safety or education course before licensing. If not, have them take it locally or virtually. Classes run about $35 and the certification stays effective on your insurance for up to 3 years where allowed.
- Good grades. Most carriers ask for a 3.0 or higher, but verify with your agent. The discount is significant and typically requires transcripts submitted semi-annually or annually.
- Limit driving during busier hours. Statistics show most accidents involving 16–19 year old drivers fall Friday through Sunday, 9pm to 6am.
- Limit additional passengers. Distracted driving is the leading cause of accidents in the U.S., and passengers increase the odds of a teen crashing threefold.
- Maintain a clean driving record. Allowing enough time to get where you are going and driving defensively keeps the record clean.
- Telematics. A 90-day glimpse into driving habits can reduce your premium up to 30%, and not just on the teenage driver's portion.
- Newer used vehicles with high safety ratings, insured for liability only. Safety features and crash statistics are a big rating factor. Really old vehicles will not always keep premiums down, so compare rates before you buy.
No matter your situation, it is important to have these conversations not only with your insurance agent but with your teen as well. If you would like to schedule a time for us to sit down with you and your teen, reach us by email, text, or phone.
Written by Bryan McClean, Principal Agent & Founder of Insure Logic.