When adding a new driver to your policy, age is one factor that your provider will consider before deciding on your premium rate. Statistics have shown that teenage drivers are at a significantly higher risk of getting into car accidents than other age groups. There is no driving history or record to consider for a new driver, so the company relies heavily on statistical data. Speeding, drunk driving, and texting while driving are some of the dangerous behaviors in teenagers, resulting in fatal car crashes.
You may want to consider these behavioral aspects before adding a teen driver to your car insurance policy because it will significantly increase your premium rate. Most states do not allow persons below the age of 18 to have cars owned in their names, and since 16 is the driving age, you will need to add your teenager to your own policy.
It is reckless and a huge financial risk to let your teenaged driver use your vehicle without appropriate coverage. The cost of your premium may double after adding your adolescent to the list of drivers, but it is a safe decision. Ensure that you get extensive coverage for all automobile-related things. Do not be tempted by minimal rates with partial coverage because the out-of-pocket costs that you are likely to spend if there’s a crash will be significantly higher than your premium.
You may enjoy discounts depending on your teen’s good behavior. For example, some providers give rewards for good grades, and boys attract higher rates than girls. Also, as the teenager gets older, some of the charges are reduced.
Here are four ways to control or reduce the excessive rates of car insurance for teen drivers.
1. Good Grades Discount
There are many benefits of having an academically sound teen, and insurance discounts are one of them. A minimum of B average is often required to qualify for this discount, and it saves up to 25% per year from your overall premium. You will need your child’s report card while applying for insurance to use this discount.
2. Resident Student Discount
A resident student discount can be applied when the teenager doesn’t live under the same roof as you. This reduces the cost of your premium because the provider accepts that the teenager will rarely make use of your vehicle compared to if he or she was living in the same residence. The cost of your premium rate will be subsidized when the teenager only uses the car on rare occasions.
3. Defensive Driving Course
The defensive driving course helps increase a person’s driving skills by anticipating situations and making safe and well-informed decisions. Enrolling your teenager in this course may reduce your premium rate up to 15% per year. It is a way to increase safety and subsidize the generally expensive cost of having a teenaged driver on your policy.
4. Use a Cheap Car
You should include your teen on the insurance policy for your cheapest vehicle to save costs. Adding your teenaged driver to the policy covering a sports car will be more expensive than for a regular or old model vehicle.
It is best to compare different market rates before deciding on the provider that suits your specific situation. Look out for affordable quotes with extensive coverage.
Do you have additional questions about your auto insurance premiums? If so, then contact the experts at Phocus Insurance in Phoenix, Arizona. Our dedicated team is eager to assist you with all your auto insurance coverage needs today.
