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According to the Centers for Disease Control and Prevention (CDC), teen drivers aged 16 to 19 are three times more likely to be involved in an accident than older drivers. In 2010, more than 280,000 teens received treatment in emergency rooms for injuries sustained in car accidents.
Insuring your teenage driver can be expensive, adding a teenage girl can double your rates, and a teenage boy driver may increase your rates even more. However, there are things you can do to lower the cost. Buying your teen their own vehicle may be the least expensive route to take. This is especially true if both parents have cars with full coverage. Purchasing another vehicle for your teen outright that does not require full coverage is usually the least expensive option. If you want your teen to have full coverage, find out which cars have the most reasonable insurance rates.
Choosing a Vehicle
If you choose the wrong vehicle, you could pay as much as 50 percent more than you would to insure a different model. For this reason, always keep insurance costs in mind when choosing a car for your teen. On average, a domestic car is less expensive to insure than a foreign car is. The model chosen also affects the insurance rates. Ideally, choose a mid-sized or small car that is a few years old. Sport Utility Vehicles (SUVs) and sporty cars typically cost more to insure. Your insurance agent may be able to give you information about which vehicles have the lowest insurance rates.
Do Not Assume Your Current Insurance Offers the Best Deal
Consider getting quotes from several companies. Even if your current insurance company offers you the lowest rates for coverage, adding new drivers may not be as inexpensive. If your teen does not need their own vehicle and only drives occasionally, be sure to list that on your policy. Consider choosing a higher deductible on the car your teen is driving, as the NAIC suggests. If you have more than one car, list your teen on the older one. Be sure to ask your agent if there are any other discounts available. Some companies offer accident forgiveness to safe drivers.
You may be able to create a package that includes your home, auto and life insurance policies. Insurance carriers like State Farm generally give clients that obtain all their insurance in one place a discount on these policies. To learn more, click here to direct to State Farm’s auto insurance page.
Driver’s Education Course/Defensive Driving Course and Academics
Numerous insurance providers offer lower rates if your teen completes an extra driver’s education course. A private course can be expensive, but you get the benefit of knowing your teen obtained more driving practice. ADEPT Driver develops proven crash reduction programs. You may want to have your teen take their computer-based crash avoidance program called teenSmart, as ADEPT Driver suggests. The majority of insurance companies also offer some type of discount for teens maintaining at least a “B” average. These discounts can be as much as 30 percent.