It’s no secret that having a teen driver in your household will jack up automobile insurance premiums.
Insurance companies consider teenagers a higher risk because inexperienced drivers are more likely to get into an accident than more experienced drivers. The risk of motor vehicle crashes is higher among 16-to-19-year-olds than any other group, according to the Centers for Disease Control and Prevention.
A six-month policy for full automobile insurance coverage that would cost Mom and Dad $991 would cost the family $1,730 if a 16-year-old driver gets added to the policy. If the teenager gets into an automobile accident, the premium could climb to $2,094 or more.
Safety is the key. Having a safe driving record can result in hundreds of dollars in savings compared to other teens who get into at-fault accidents or have moving violations.
It’s important to have automobile insurance coverage for a number of reasons:
- It’s the law. In North Carolina, you are required to have automobile liability insurance to legally drive. If you have a loan on your vehicle, you’ll likely be required to have collision and comprehensive insurance also.
- It helps protect you financially.
- It helps pay for medical expenses and property damage if you’re in a crash. Without insurance, you have the potential of being sued directly for the damage or injuries you caused.
If you drive without insurance, you could be ticketed and fined. Your vehicle registration could be suspended and your vehicle could be impounded.
Other things that could affect your insurance premium include your driving experience, driving record, where you live, the kind of car you drive and how much you use your vehicle.
To lower automobile insurance premiums, teens should avoid driving high-horsepower or luxury vehicles. Instead, look for vehicles that have high safety records and don’t have turbocharged engines. Look for older, but reliable models.
It may also help to shop around insurance companies to see if you can get a better deal. Prices may vary from company to company. When shopping around, make sure you’re making an apples-to-apples comparison.
If you are a parent of a teenage driver, you’re concerned about your child’s safety. While you can’t always be by their side, there are some things you can do to keep them safe.
You can educate yourself and your teenager about the risks and insurance implications of unsafe driving. Driving safely saves lives and saves money.
Setting clear rules for your teen driver is also an effective tactic. Research suggests that parents who do so can cut accident risks in half. Talk openly with your child about your expectations regarding their behavior behind the wheel. You may even consider building a teen-driver contract that clearly defines rules and consequences associated with driving privileges.
Safe-driving habits can save money on your insurance premium. Most importantly, it can save lives.