As many parents can tell you, having a teenager driving a car for the very first time can definitely be just as nerve wracking for the parents as it is for the teen driver. There is a very good reason for this as statistics show that a 16 year old driving is about 10 times more likely to get into a driving accident than drivers who are between the ages of 30 to 59. The leading cause for death for teens ages 15 to 20 is auto accidents.
For this reason, teen drivers, or also known as new drivers to auto insurers, will usually pay the most expensive premiums for auto insurance. Parents can generally expect the premiums on their car insurance to increase by somewhere between 50% to 200% after they have added their teenager to their auto policy. However it may be possible to negotiate with your insurance company for a lower rate after your teen has a safe driving record for one or two years.
While it is true that auto insurance for teenagers is expensive, there are things you can do to help less the financial hit. It usually does cost less to add your teen driver onto your auto insurance policy than it is to buy a new policy. Any discounts that you have will also apply to your teen. If you have multiple vehicles, your insurance company might assign your teen driver to the car that is most costly to insure automatically unless you specifically request something different.
Many insurance companies will offer discounts to teenagers who complete a course in safe driving. You can usually save somewhere between 5 to 15% on your insurance rates if your teenage completes a course. Some insurers also give discounts if you use their booklets and instructional videos about safe driving. Teens that get good grades in school may also be eligible for a discount of 10 to 20% with a B grade average or above.
The kind of car your teenager drives can affect the rate on your insurance and also influence how your teen drives. A teenager who is driving a sports car is more prone to driving fast; if a teen is driving a minivan or family car equipped with safety features the chances of them driving sensibly is more likely. If possible, avoid allowing your teenage to drive a truck or SUV, as they type of vehicles are more prone to rollover accidents. If you are buying a car for your child, consider a used car which will be a lot less expensive for you to insure.
One final thing, despite the fact that your child will likely object, you should go for a drive with your teen driver. Ride as the passenger to get a sense of how good a driver they are and any driving errors they might be making. If you see any examples of aggressive or bad driving, lack of signaling, speeding or dangerous lane changes, be sure to point them out. Also any time you have a teen riding with you while you are driving, make sure you set a good example for them.
