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How to Afford Car Insurance for a Teenage Driver

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Key takeaways...
  • Auto insurance rates for teen drivers are higher than the costs for most adults
  • Discounts could potentially lower the fees associated with teen driver coverage
  • Comparison shopping could assist with locating previously elusive low rates for a teen driver

The average teenager cannot wait until he/she is old enough to drive! While a teen may or may not be able to afford his/her own car, the young driver can be added to an adult’s auto insurance policy.

Whether the teen has his/her own car or is an added driver on a policy, the insurance policy must be paid for. Some worry may set in about the potentially high costs of insurance.

Parents or guardians might be thrilled their adolescent can now drive, but they won’t be too thrilled about paying high premiums.

Since teen drivers may be deemed a bit of a risk, auto insurance costs are higher for teens and young adults than for older persons. Buying affordable insurance coverage for a teen driver does not automatically have to be impossible.

Compare car insurance quotes to find the best rate for the insurance you need for your teen driver.

Adding of a Teenager to Your Policy

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If the teenager lives in the parent or guardian’s household, then the insurance company likely assumes the young person drives the family vehicle. This, in turn, leads to the rates on the premiums going up.

A way out of this would be to place the teen as a “named excluded” on the policy, which means the teen is not allowed to drive any vehicles so he/she is not listed on the car.

What happens if the teen ends up taking the car out anyway and gets into an accident? The short answer would be a lot of trouble results for all family members.

Maybe it would be better to simply add the teen to the policy as opposed to accessing the named excluded option. Since ways to save money exist, doing so might not be financially painful.

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The Risks with Teens

Why do teenagers deal with punitive auto insurance rates?

Teen drivers reflect a risk. Data shows teen drivers have a tendency to get into accidents more than older, more seasoned drivers.

The greater risks associated with teen drivers mean the auto insurance companies are worried about big settlements and losses in the event of an accident. So, the insurance companies charge accordingly with the premiums.

Are teen drivers automatically reckless on the road? Some teen drivers, like adults, may be a bit reckless. Not all teens disregard rules and safety on the road, but there is another issue with teens: experience.

Truth be told, teen drivers do not exactly have a lot of experience with driving. No new driver does. A lack of experience factors into how someone acts and reacts on the road.

  • The individual may leave the doors on the vehicle unlocked and end up with the vehicle stolen.
  • Others may be unaware when parking and could damage the vehicle by hitting something.

Comprehensive and collision coverage claims may follow mishaps, which means those premiums are going to be a little high.

Solutions do exist to cut down on the costs. Comparison shopping for better rates is among them. So is seeking out really helpful discounts on the policy.

The Good Student Discount

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Unique means of saving money on a teen’s insurance rates do exist. Parents might not know discounts are even available. The insurance companies aren’t exactly hiding the discounts. A few insurance providers may even be advertising them.

A good student discount could very well cut down insurance premium costs far more than a policyholder realizes.

Earning good grades in school is reflective of being responsible and diligent. Such traits may very well carry over into other areas of life including how a person drives.

Auto insurance companies may provide discounted rates to teens getting those vaunted good grades. A little comparison shopping may be in order to locate those discounts, but the effort is worthwhile.

The Defensive Driver Discount

Defensive driving courses and related auto insurance discounts are not age-exclusive. Anyone can enroll in a defensive driving course. Some wait until their insurance rates go up after filing a claim.

When insurance for teens is already a bit high, anything and everything that provides a valid means for cutting down on insurance costs are worth exploring. Defensive driving courses fall under that type of description.

Do Your Research

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What happens if someone is already paying a lot of extra money on insurance to cover a teen driver? Revising the current policy through exercising access to discounts is one possibility.

Perhaps reviewing a few more auto insurance policy quotes from other companies would be worthwhile as well. If the current insurance company is too costly, making a switch might be a good plan.

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