Why Insuring Your Teen Driver is So Pricey

Adding a teen driver to your insurance policy is expensive.  In fact, it has been suggested that adding a teen to your insurance policy can skyrocket rates nearly double what you are already paying, raising premiums nearly 80%.

And, while your pocket may be suffering at the hands of your household’s newest driver, there is seemingly good reason for such high rates.

Today we are going to look at some of the biggest reasons why teen drivers are so risky to the rest of the driving population.  In addition, we are going to share some great ways to curb those prices so you don’t go broke letting your teen drive.

Reasons Teen Insurance Premiums Are So High

1. Technology

Cell phones have brought many improvements to people’s daily lives.  However, they have also brought many problems to the roads.  GPS, texting, and various social media platforms cause teens to become distracted easily.  And, with their inexperience on the roads, they are more likely to crash than someone with years of experience dealing with distractions, with or without a cell phone in their hands.

2. Speeding

Although people of all ages speed while on the roads, it is apparent that teen drivers have skewed ideas about what it means to “speed”.  In fact, one group of surveyed teens considered 90mph to be speeding.  In another survey, it was found that 62% of teens admitted to street racing, drunk driving, or engaging in other unsafe driving activities.

3. Peer Pressure

Teens alone in their cars with their buddies can lead to some wild times.  And, while everyone wants to believe their child is not going to get hurt while driving, the truth is, the more teens that enter your child’s car at one time, the higher likelihood an accident will occur.

4. No Previous Record

Insurance premiums are largely based on your driving record.  New teen drivers do not have a record to base that premium off of, so there is no way to tell if a young driver is a safe or reckless driver.  And, historically speaking, teen are proven to be more reckless than the average adult population, so their premiums are going to automatically start at a higher price.

5. Seat Belt Use

Teens are known for not using their seat belts.  In fact, they tend to be the group of drivers that use seat belts the least, despite the safety they provide both drivers and passengers.

While you may emphasize the importance of buckling up to your teen driver, insurance companies know that while unsupervised, the chances of teens using them are slim.  This makes teens a risky group and justifies the higher insurance premiums.

Ways to Reduce Teen Insurance Policies

Although adding a teen driver to your insurance policy can become a pricey ordeal, there are several ways to help lower you monthly payments:

  • Teach your teen what to expect while taking the learner’s permit test
  • Practice the essential skills of driving safely at all times
  • Choose a safe vehicle
  • Consider paying higher deductibles
  • Persuade your teen to get good grades
  • Encourage a clean driving record – no accidents or tickets
  • Have your teen complete a driver’s education course

As you can see, there are several reasons why insuring your teen driver is likely to cost you more than you would like.  And, despite your individual coaching on the importance of safe driving, insurance companies don’t care.  So, follow the above-mentioned tips for lowering your premium costs and wait it out.  Your teen driver won’t be a teen forever.

Photo Credit: llee_wu on Flickr. CC-BY-ND-2.0.

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