The Cost of Auto Insurance For Teens After an Auto Accident

Teen Crash Picture from Fox, Teen Insurance

Parents everywhere are aware of the high cost for auto insurance for their teenage children. It’s well known that insuring them will be much higher than it would be for without the additional coverage. If the children in fact have an accident, they’d expect major surcharges in addition.

Auto insurance premiums for teens (with perfect driving history) are going to be high. When there are accidents in their driving history it is safe to assume it will missile your checkbook. What follows is some advice that is hoped to aid you in lowering the costs you will have to pay to insure your teen. It may be just a small amount saved, but every penny can count.

The rates the companies charge based on rate tables that have resulted from research on many aspects. One of these is on the developmental stages of young drivers. Teen drivers stand to have less control over themselves, still learning rational reasoning, are still forming the basis for judgment, and getting a hand on their emotions. Many teens do not mature until their late teens. But they often drive much sooner, and other factors show they have a higher chance of accidents (even with fatality).

Initially you can expect your auto insurance premiums to increase between 50% and upwards to 4 times your normal rate simply by adding your teen driver. These insurers leave you helping fund the additional risk this age bracket can bring them in claims. When confronted with this increase you may find a couple paths to go.

You can simply tell your teen they won’t be able to drive. But where then will they gain the experience they need to survive later in life? The other option is to shop a lot for better rates. Many parents have in fact found more affordable rates considering their teenage children are included in the coverage.

Among the many insurance carriers out there are those which specialize in younger driver coverage. Their policies cost less than their competitors. Their competition often simply takes the most expensive vehicle and insures it for the highest risk driver, even where the higher risk driver will never be allowed to drive the particular vehicle (due to home values and restrictions). Switching from one of these insurance companies in itself may reduce your costs noticeably.

Other factors that may apply in the rates you can receive when adding them to your coverage may apply as well. Among these are better grades. Straight A students are charged 10-15% less on average for auto insurance coverage. In addition those that have passed an approved driver’s education course will often receive an additional 5-15 percent cut in the premiums.

We all want our children to be safe, and the newer the vehicle, the safer it is. But for insurance purposes, it will definitely cost more to insure (often requiring collision coverage as well). A slightly older vehicle can definitely decrease what premiums you have to pay. In addition raising your deductibles can also lower the rate noticeably as long as there are no accidents that would make it a factor.

In the end, becoming informed of all your options and combinations will enable you to find the best rate possible, while quite possibly allowing your teen drivers an experience that will aid them later in life as well.

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