What You Need to Know About Teen and Young Driver Insurance
The price of car insurance fluctuates based on a variety of factors – but one of the biggest determinants of this price is your age. Since teenagers and young drivers are still at the beginning of their journey behind the wheel, they are typically the most expensive age group to insure.
On average, parents can expect their annual insurance bill to increase by $2,168 when adding a 16-year-old driver to their comprehensive car insurance policy, according to Bankrate. To clarify, this is not the total cost but an additional cost. In comparison, the average annual premium for comprehensive coverage for a 40-year-old with a clean driving record and good credit is $1,668. Additionally, if the young driver is involved in a car accident or receives a ticket, insurance rates can increase by an additional 20% to 40%.
How to Save Money on Teen Car Insurance
There are ways to reduce the costs of your insurance policy. For example, being safe drivers and using more efficient vehicles (such as Honda Civic, Toyota Prius, and Nissan Rogue) tends to lower insurance costs even for teen drivers, according to Giusti. There are also discounts based on how much you use the car: “Some companies offer discounts for drivers who drive below average miles per year,” according to Janet Ruiz, director of strategic communications at the Insurance Information Institute.
Teenagers may also qualify for “good student” discounts, or discounts based on learning safe driving behaviors from defensive driving courses or graduate driver licensing programs. You may also be able to save money if the younger driver listed on your policy doesn’t use their car because they are in college. “If there’s a young driver on your policy who is away at college without a car, you might also qualify for a lower rate,” according to Ruiz. Every insurance company offers different discounts based on your coverage choices and other factors, so it’s worth checking which discounts apply to you before signing up.
Best Car Insurance Companies for Teens and Young Drivers
Geico: Geico offers competitive rates nationwide for young drivers – the average annual premium for comprehensive coverage for a 16-year-old driver is $2,168, according to Bankrate. Additionally, it has few complaints, according to the National Association of Insurance Commissioners, along with high customer satisfaction ratings according to J.D. Power surveys.
The strong discounts specifically targeting young drivers make Geico a great option if you need to reduce your costs. This includes a “good student” discount for B averages or higher (savings up to 15%), a discount for new vehicles (savings up to 15%), a multi-vehicle discount (savings up to 25%), and a good driver discount for youth who have not been in accidents for five years (savings up to 22%).
Amica
Amica has been listed as one of the best car insurance companies due to high customer satisfaction ratings – this is one of the reasons it also makes this list. As the oldest mutual automobile insurance company in the United States (meaning it is owned by policyholders), it has over a century of experience in the industry. This company also operates in all states except Hawaii.
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Farm: To qualify for accident forgiveness at State Farm, you must have been with State Farm and accident-free for nine years.
Best Car Insurance Company for Teenagers and Young Adults
Ultimately, you should choose an insurance company that fits your coverage needs and fits your budget. For young adult drivers, car insurance is more expensive, so finding a policy that includes accident forgiveness, low rates, or multiple discounts is key.
What is Accident Forgiveness?
Accident forgiveness is a feature in car insurance policies that prevents your insurance rates from increasing after your first at-fault accident. Each insurance company handles accident forgiveness differently, so some companies may offer you this feature as a free perk, while others may make it an add-on to your policy that you have to pay for. Additionally, accident forgiveness may not be available in all states, but this also depends on the company.
All the options on this list include some form of accident forgiveness. Here’s a breakdown of each company:
- Geico: Accident forgiveness is available for drivers who have been accident-free for five years or more, or you can upgrade your policy by purchasing this feature. Not available in California, Connecticut, and Massachusetts.
- USAA: Like Geico, you can unlock accident forgiveness at USAA for free if your family has gone five years without accidents. Alternatively, you can purchase the option. Not available in Connecticut, Delaware, North Carolina, California, and New York.
- State Farm: To qualify for accident forgiveness at State Farm, you must have been with State Farm and accident-free for nine years.
Farm: To qualify for accident forgiveness at State Farm, you must be with State Farm and have gone nine years without any accidents.
Frequently Asked Questions About Teen Car Insurance
How do you choose the best coverage?
The best coverage for you will address your specific coverage needs for your car while fitting your budget. For young adult drivers, car insurance is more expensive, so finding a policy that includes accident forgiveness or low rates or multiple discounts is key.
What is accident forgiveness?
Accident forgiveness is a feature in an auto insurance policy that prevents your insurance rates from increasing after your first at-fault accident. Each insurance company handles accident forgiveness differently, so some companies may offer this feature as a free perk, while others may make it an add-on to your policy that you have to pay for. Additionally, accident forgiveness may not be available in all states, but this also depends on the company.
Why is insurance so expensive for teenage boys?
According to the Centers for Disease Control and Prevention, the car accident death rate for male teenagers aged 16 to 19 is more than twice that of female drivers in the same age group. This, along with the general inexperience of teenagers and
Source: https://www.cnet.com/personal-finance/insurance/auto/best-car-insurance-for-teens/
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