Teen Driver’s Car Insurance, Glendora – One day we’re teaching our kids to sit properly in their car seat, hold our hands and look both ways as they cross the road, and carefully drive their power wheels without running into things. But the next??? The next, we’re teaching them how to adjust the car’s mirrors and seat, slowly release their foot off the brake and press the gas, maintain a safety cushion with their surroundings, safely change lanes, check for blind spots, and make a safe three-point turn. Embarking on the journey of acquiring a teenage driver can be an emotional roller coaster.
Will they be safe on the road? Will they be cautious of other drivers? Will they put their phone away? Will they follow the rules of the road? The fact is, according to the Center for Disease Control (CDC), teenage drivers between the ages of 16 and 19yrs are three times more likely to be in a car accident than one over 20. As parents, this is nerve wrecking because all we want to do is protect our children. As insurance companies, this can indicate risk.
Unfortunately, that’s why insurance rates generally are higher for teen drivers compared to adults. However, there are ways to reduce a teen driver’s car insurance rates.
How to Reduce a Teen Driver’s Car Insurance Rate
1) Permitted Drivers May Not Need Their Own Policy
Kids can’t wait to start counting the days to when they can have their permit, since this is their first step to getting their driver’s license. (Side note, we bet this is one test they’re super excited to study for and take.) But what happens when they get their permit? Well, in California, one must be between 15 ½ and 18 years of age to apply for their permit. Once earned, they can drive with their parent, guardian, spouse, or an adult over 25 years of age who has a valid driver’s license. They must also hold onto their permit for six months before taking their driving test for their license. Now, during this time, many parents wonder if their teen driver will require their own car insurance. And the answer, generally speaking, is no. The car driven must be insured, but generally not the permitted driver. Therefore, as long as the car is insured and the teen driver is not excluded, the driver should be covered.
Two things to note: (1) If your teen causes a car accident while with a permit, you may have to add them to your policy or exclude them moving forward. (2) Since teen drivers are new to the road, unfortunately getting into car accidents is common. Accordingly, if the car your teen is driving only has liability insurance, this is the time to consider switching to full coverage. Yes, liability coverage is usually cheaper than full coverage, but many times, when you work with a knowledgeable agent as OAK Insurance Solutions in Glendora, you can establish a policy that keeps your rates low and your coverage high.
2) Adding a Teen Driver to Your Existing Policy Can be Cheaper than Getting Their Own Policy
Depending on the primary driver’s circumstance, in most cases, adding a teenage driver onto an existing policy can save you more than adding them onto their own policy. Why is that? Well, one reason is that teen drivers by themselves don’t have all the characteristics that can help reduce their rates compared to an older adult (i.e. being married, driving history, low-risk job, etc…). Additionally, if they have their own car, you can receive multi-car discounts simply by adding them and their car to your existing policy.
3) Good Grades Pay Off
If your teen is enrolled in school full-time and has a grade point average of at least 3.0, they are considered a lower risk and responsible driver. As such, the teen driver can be rewarded discount rates!
4) Driving a Safe Vehicle Makes a Difference
I bet you’ve heard the type of car you drive makes a difference to your rate, and this is true. The safer your car, the more affordable your rate. So if you’re car shopping and looking for an insurance friendly car, think enhanced safety features, crash protection, and larger body. Avoid sports cars, trucks, and SUVs.
5) Keep a Clean Driving Record
We have established that younger, newer drivers have higher rates due to higher risk. However, if you promote and establish rules for safe driving, and your teen follows, then as time goes by, their rates can drop.
6) Take an Approved Driving Course
After six months of driving with a permit, a teen is eligible to apply for their driver’s license. However, in addition to completing 50 hours of driving practice with an adult over 25, 10 of which must be done at night, the new driver must complete a driver’s education course and 6 hours of professional driving training. Although policies differ, if you take an approved driving course, your rate can be reduced.
7) Carry a Higher Deductible or Lower Coverage Limits
As long as you carry adequate insurance coverage, should an accident occur, you have free range to carry a higher deductible or even lower your coverage limit. To make such changes, it’s best to have your policy reviewed (we’d be happy to do that for you) and look at what options are available to you.
There you have it! Quite frankly, having a teenage driver is bittersweet. Suddenly your little one is not so little anymore. Suddenly the fear of not holding your hand has grown exponentially to making sure they’re safe on the road. And suddenly, your insurance policy is considering a “teen driver.” Although we can’t keep your little one little, we can help you with your teen driver’s insurance rates. Above are just some of the tips available to reduce your rates. For more options and to have your current policy reviewed, please contact us.