How Much Will Insurance Cost for My Teenager?

Monday, April 12, 2010

Purchasing insurance for a teenage driver is one of the highest expenses you will ever incur. The risk of a teenager having an accident per driven mile is three times higher than if the driver is aged 65 to 69. Consequently, the premiums for the insurance policy and insurance rates are high as insurance companies want to protect themselves against higher risk. Premiums are calculated based on how likely you are to be involved in a crash, statistically. For teenagers, that statistic is high: car accidents are the leading cause of death for people aged 15 to 20.

Insuring your car is costly enough without adding a teenage driver. For instance, in San Diego, CA a couple would pay $2,324 on average for car insurance. Adding a teenage driver to that same policy would make the cost rise to $4,562, an increase of 96%. Despite the huge risk associated with teenage drivers, there are ways to cut the cost of premiums. Ensuring they maintain grade averages of B or higher can cut the premium by as much as 25%.

Another way to lower the premium cost is to drive an "insurance friendly" vehicle. There are certain types of cars that thieves look for more than other types. For example, in 2008, the most popular car to be stolen was the 1994 Honda Accord, followed by 1995 Honda Civic and the 1989 Toyota Camry. A third way is to ask for higher deductibles. Higher deductibles mean that you shoulder part of the risk is exchange for lower premiums.

Having your teenage driver take a certified driver's education course can help cut premiums by an additional 5% to 15%. The best way for teenagers to really absorb the education is for them to take longer courses, which is why most states now require that teenagers log fifty or more hours of supervised driving.

Submitted By: Victoria of Ratelines

1 comment:

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