Getting a learner’s permit or driver’s license can be a rite of passage for young drivers. However, with this newfound freedom and responsibility comes the major expense of auto insurance. Young drivers under the age of 25 pay some of the highest rates for auto insurance. Insurance companies evaluate the risks associated with all drivers when assigning premium rates. Since new drivers are inexperienced, they pose an inherently higher risk.
In most places, state laws mandate that all drivers maintain minimum liability coverage. This means that a minimum amount of car insurance is required even for teen drivers with a learner’s permit. Liability insurance, however, will only cover bodily injury and property damage claims by other drivers if you are at fault for an accident. Since many young drivers with a permit don’t own their own car, they may only need liability coverage at first. When they get a full driver’s license, however, they may need more coverage, which will come with higher premiums.
Most teen drivers are usually added to their parent’s policy when they are learning to drive with a permit. Once a driver becomes fully licensed, they must be insured fully before getting on the road alone. The car they are driving and their situation will dictate insurance needs for young drivers. Even though teens pay more insurance, there are some ways to lower premiums. Let’s take a look at finding cheap car insurance for teens.
Add teen drivers to a parent’s policy.
As discussed, a teenage driver can usually be added to their parent’s policy. This is the cheapest and most common option for young drivers with a permit or driver’s license. When the teen has a permit, most insurance companies allow parents to add them to an existing policy without a rate increase. After a young adult gets a full license, however, they can pay some of the highest rates for auto insurance among most other drivers. The cheapest option is to add the teen driver to an existing policy rather than purchase a more expensive separate policy. A family policy will allow the discounts and benefits offered to experienced drivers to lower the cost for teen drivers.
Shop around for insurance rates.
Out of all age groups that insurance companies consider, teens are seen as the most at-risk group for accidents, tickets, and other incidents. Teens from 16 to 19 years of age pay the highest rates due to their perceived elevated risks. To find the lowest insurance rates for teens, you should check out quotes from multiple insurers. Shopping around for insurance rates, coverages, and plans will help you locate the best possible options for young drivers.
Look around for discounts.
While rates will be higher for teens until they establish some experience and good driving habits, some discounts might help lower the cost. After a certain period, having and maintaining a clean driving record could lead to significant discounts. Additionally, many insurers offer discounts for young drivers to help offset high rates. Several major insurers offer discounts to teens for getting good grades or attending college. It might also be worth considering discounts that offer savings for monitored driving with a telematics device. Look around for discounts and rate reductions to help with higher insurance premiums for teen drivers.
Teen drivers pay some of the highest insurance premium rates due to inexperience. The cheapest option for teens is to get onto their parent’s policy until they have a record of safe driving habits. Aside from this, however, shopping around for multiple quotes and seeking out available discounts is the best way to find affordable car insurance. With some time and research, you can find the best rates and coverages for your teen driver.