Teen drivers are one of the largest expenses your insurance plan will take. Why? Teens are notorious for quick judgements, which lead to an increase in car accidents. Adding a teen driver can increase your insurance rate by $600 a year or more, that’s a 78% increase for the average car insurance plan.
Why Do Teen Drivers Cost So Much?
Teen drivers are at a higher risk for car accidents. In fact, in 2015, nearly 1,900 teen drivers died in vehicle accidents. The Centers for Disease Control and Prevention (CDC) has declared motor vehicle accidents the leading cause of death for teenagers. Male teen drivers are at-risk for a higher rate of car accidents, causing most insurance plans to see increased rates by 89% or higher.
How to Reduce Insurance Premiums for Teen Drivers
So what can you do about reducing your car insurance rates when you add a teen driver? It helps to take a look at your insurance options. Working with an experienced insurance broker is one way to help compare rates and policy options. Experienced brokers can recommend things like using a graduated driving program. Teen drivers can use a graduated driving program to help teens gain more experience on the road, thereby reducing their risk of car accidents.
Several insurance companies will provide discounts for teen drivers. There are some insurance companies like Allstate that do provide up to 20% discounts for teens with good grades. Encouraging your child to be a better student is a great way to decrease your insurance rates. Allstate also provides Drivewise, an app designed to track and monitor your teen’s driving habits, allowing you to see a report card of how well they drive.
Coaching Teen Drivers
Another way to truly keep your insurance premiums and deductibles under control is to coach your teen driver. Spend time with them behind the wheel and give them the valuable skills and tools they need to make smart decisions behind the wheel. The first year of driving is always the riskiest for teen drivers, so you can see an increase in your rates the first year. Following that initial year, you can start to see a decrease in rates as the teen demonstrates responsibility.
Teaching Teens to Put Down the Phone
Distracted driving is one of the most common problems when it comes to teen drivers. It is important to have a frank discussion about phones and driving and the risks associated. As a parent, you need to do your part to lead by example and avoid answering your phone or texting while driving. Phones now have driving modes you can show your teen how to use and focus on preventing them from using their phone while behind the wheel.
Selecting a Car for Teen Drivers
Teens need to have protection when they are driving, and heavier vehicles will fetch a lower rate than the lighter cars. You do not need to purchase a new car for a teen, but it helps to purchase a car with a higher safety crash test rating.
Comparing rates is the best way to determine which insurance coverage is best for your teen driver is to contact Mountain Ridge Insurance. We provide custom insurance quotes designed to meet your needs. Contact our Ogden insurance office for more information about adding a teen driver to your insurance plan.