Car Insurance for Teens: Insurance Costs

We all know that risky drivers are expensive to insure. And teens are considered to be one of the riskiest groups to insure. So, there is no surprise to see how high the typical car insurance premium is for an under 25 years old driver. Check our blog to find out more and get quotes from the best car insurance companies in your area!

carData shown by the Insurance Institute for Highway Safety (IIHS) points that the fatal crash rate per mile driven for drivers between the ages of 16 and 19 is almost three times higher than all other age groups.

This is why adding a teenage driver to an existing auto insurance policy often causes a severe spike in annual premiums. Premiums can sometimes double when a teen is added to the mix.

U.S. families who add a young driver to their existing auto insurance policy will see an average annual premium increase of 79 percent, according to the study. The good news is that the average premium increase for teen drivers is down from last year’s average increase of 80 percent, and even lower than 2013, when the increase was as high as 84 percent.

One way to save money on teen car insurance is by accessing discounts, like the famous good student discount. Most insurance companies offer a good student discount that can really boost your savings. Encourage good grades averaging above a 3.0 grade point average. Have your teen’s most recent report card ready to go when purchasing car insurance. If a 3.0 isn’t possible at the time you add your teen driver, the discount can always be added on at a later date if the grade point average improves. Applying for usage based insurance programs is also a sound idea if the teen has good driving habits.

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