Having teen drivers in the house can be anxiety-inducing in more ways than one. Putting a teenager behind the wheel can stress your patience and auto insurance rates.
Car insurance rates rise dramatically for young drivers under 25, influenced by factors that increase the risk of an at-fault accident, such as age, driving habits and even gender.
Unfortunately, you can’t escape all of the financial fallout of adding a teen driver to your car insurance policy. But there are ways to score teen driver discounts and minimize the impact on your premiums.
How Much Does Car Insurance for Teens Cost?
Brace yourself. Even an excellent family driving record won’t buffer the cost of adding a teen driver to your car insurance. There are a few reasons for this, primarily that teen drivers are at greater risk of being involved in an accident due to inexperience .
Coverage.com indicates the average cost of adding car insurance for teens to a family policy is $2,300 per yearan increase of nearly 130%. Insurance costs will also be affected by the type of car your teen driver has, driving record, state of residence and other factors.
Fortunately, by age 25, new drivers have clocked enough hours behind the wheel for the risk calculation to ease and auto insurance premiums to lower. Car insurance companies will typically reduce insurance rates as much as 50% or more for drivers who are 30 and older compared to their younger counterparts.
6 Ways to Lower Car Insurance Premiums for Teenagers
Whether your family budget can absorb the cost or not, you can still get lower auto insurance premiums for teen drivers. Car insurance companies offer discounts and special programs to reduce the costs of insuring new drivers.
- Take a safe or defensive driving course
- Ask for a good student discount
- Leverage distant student or low mileage discounts
- Opt into car insurance telematics
- Shop around for car insurance quotes
- Pick the right car for your teen