Having teen drivers in the house can be anxiety-inducing in more ways than one.
Unfortunately, you cant escape all the financial fallout of adding a teen driver to your car insurance policy.
But there are ways to score teen driver discounts and minimize the impact on your premiums.
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How Much Does Car Insurance for Teens Cost?
Even an excellent family driving record wont buffer the cost of adding a teen driver to your car insurance.
There are a few reasons for this.
Mostly its that teen drivers are at greater risk of being involved in an accident because of inexperience.
Carinsurance.com said the average cost of adding teens to a family policy is$3,726 per year.
Fortunately, by age 25, new drivers have clocked enough hours behind the wheel for premiums to lower.
No Interest Til Almost 2027?
Car insurance companies offer discounts and special programs to reduce the costs of insuring new drivers.
Ask for a Good Student Discount
There could be savings behind stellar report cards.
Did you know?
you could Get Paid Up to $140/Month Just for Sharing Your Honest Opinion
3.
The car insurance company I had offered it as a route to possible discounts.
We installed a gear in a port on the vehicle, Brown said.
After the first six months, the car insurance company gave us a report on what the gadget gathered.
It gave me a talking point to let them know their driving was being monitored, he said.
It gave them a stake in being careful beyond courtesy and common sense.
Your insurance agent can run those numbers before you ever buy.
There might be a clear winner.
Is it Cheaper for Teen Drivers to Get Their Own Car Insurance Policy?
A teen might pay three times as much on their own if they could even get a policy.
Auto insurance companies dont impose age limits.
Full-time students with a B average earn up to 15% off as part ofGeicos good student discount.
Snapshot is a monitoring program available to all drivers that utilizes an app to track driving habits and usage.
Nationwide
Nationwide has several discounts for teen drivers.
The program requires participating in driving simulations and completing activities focusing on behaviors leading to crashes.
Allstate also provides telematics throughan app called Drivewise, as well as distant student and good student discounts.
This discount continues to be applied automatically to your family policy premiums until the young driver turns 21.
However, think carefully about whether you have the savings to cover a minor accident upfront.
Its advisable to havean emergency fundbefore adjusting liability limits for a young driver.
Use the U.S. Department of TransportationsNHTSAs 5-Star Safety Ratingsto research potential cars for your teen driver.
Kaz Weida is a former senior writer for The Penny Hoarder.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…