The rites of passage for children include their first steps, first words, first day at school and first time behind the wheel of a car. That last one is exciting in a different sort of way than the other occasions. Once parents get past the jitters of turning the car loose in their teenagers’ hands, they realize that their days as a chauffeur may be numbered. That is actually a good thing. However, the cost of car insurance for teenage drivers usually falls on the parents. Knowing what to do before and after your teenager gets a driver’s license can save you hundreds of dollars.
Teenage Driver Risk
The business of car insurance for teenagers is really all about risk. For 2007, the numbers are not on the side of the new driver.
The most common cause of death for teenagers was a motor vehicle crash.
- 16 year-olds are more likely than any other driver to be involved in a crash.
- 15-20 year-olds made up 12.9 percent of drivers in fatal crashes.
- AAA approximates the cost of crashes involving teenagers 15-17 years old at $34 billion.
- Nearly a third of teenage drivers who died in car accidents had been drinking.
- Each additional passenger increases the driver death rate for 16 and 17 year olds.
With facts like these, it is no wonder that car insurance for teens rates are higher than any other. Even if you have successfully brought your child into his or her young adulthood with values that would preclude them from engaging in high risk behaviors, the young drivers car insurance companies depend on nationwide statistics to set their rates.
Saving Money
Cheap insurance for young drivers just seems like a dream. With annual insurance premiums for a teenage driver typically reaching up over $1,000, the desire to find any way to save is strong. Here are some tips.
- Put your teenager on your policy. It is less expensive overall than insuring them on their own separate policy. Don’t try to keep a new teenage driver a secret from your insurance company. When it is finally disclosed, the penalties would wipe out any cost savings you might have enjoyed.
- Many major insurance carriers offer good student discounts. Help your child understand the many benefits of maintaining a B-average or better, including driving privileges.
- Invest in a formal driving course for your teenager or insure the one provided at their high school qualifies for a discount with your insurance provider. New graduated driver licensing laws will generally require the new driver to have 50 hours of behind-the-wheel time with an experienced adult driver in the car. Doing both should result in savings of at least 10%.
- Pick the right vehicle. 4-door, 4-cylinder cars and minivans fetch the best rates. Old clunkers may not be the best choice due to the lack of operating safety features.
- Some insurance companies are now offering devices that are installed in the vehicle that can help make your teen drivers safer. Installation will usually mean discounts on your premiums.
The cheapest car insurance for teenagers will involve taking advantage of a combination of these measures.
Things to Avoid
The personal impact of death or injury is, without a doubt, the costliest loss possible on the road. Be sure your teenager is aware of the impact of a motor vehicle fatality or accident involving severe injury. Protecting them from this kind of information could be deadly. At the other end of the impact scale would be those pesky traffic tickets. It would seem to go without saying, but obeying traffic laws is a good way to stay safe on the road. However, avoiding traffic tickets, is essential to maintaining cheap insurance for new drivers. In the middle of the scale are violations of driving under the influence of alcohol. Even if no one gets hurt, it is not unheard of for a teen driver to be canceled altogether for this type of violation. Consider higher deductibles and shop around for the best rates.
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