U.S. drivers pay an average of $2,150 annually for full coverage on their automobile — an increase of more than 63% over the last decade, according to Forbes Advisor.
Younger drivers, however, can expect to pay exponentially more for coverage, with the average 16-year-old with their own policy paying $8,765 per year, and 17-year-olds paying an average of $6,829 in annual premiums.
Adding a teen driver to an existing policy is often a more cost-effective option, but parents should still expect to pay a higher premium per month for coverage if they go this route.
PRO TIP:
A separate policy is rarely the cheaper option for a young driver, but there may be a few exceptions. For example, if you drive a luxury vehicle or an expensive sports car and your teen isn’t going to drive it, it may be cheaper for them to have a separate policy. Talk to your insurer to fully weigh your options.
The reason why younger drivers tend to pay so much more for coverage than their older counterparts is because of the amount of risk they present to insurance companies.
Motor vehicle accidents are the number one cause of preventable death for those ages 13 to 18, and young drivers are twice as likely to be involved in a fatal accident as adult drivers.
Nevertheless, newly licensed teens can avoid accidents by upholding safe driving practices on the road. Be sure to give your teen the following tips for staying safe behind the wheel.
- Always use your seat belt, even if you’re just going for a short drive down the block.
- Never drive under the influence of drugs or alcohol. Remember that prescription medications can impact your driving, too.
- Avoid driving at night if you don’t have much experience behind the wheel.
- Watch the forecast to avoid any inclement weather.
- Always try to stay at least four seconds behind the vehicle in front of you. This can help give you more reaction time in the event of an emergency.
- Never use your cellphone in your car. Don’t drive with more than one other person in your car until you feel more comfortable behind the wheel—this will help you to stay focused on the road and the traffic around you.
- If you ever feel uncomfortable driving or feel as though the road conditions are too dangerous, pull over and park your vehicle as soon as it is safe to do so.
Tips for Parents:
In addition to giving your newly licensed teen this guidance, you can take precautions to help them stay safe behind the wheel as well. Be sure to have open conversations with your teen about driving risks to ensure they understand how serious the consequences of unsafe behaviors can be.
Typically, there are ways to lower your premium as many carriers offer a variety of discounts for teen drivers including:
- Good Student Discount
- Multi-car: if your teen has their own vehicle to add to your current policy, you will receive a discount for having more than one vehicle on the policy.
- Teen driver: if your child driver is 18 years old or younger and you have been consistently insured for at least 12 months, you may be eligible for an additional discount.
We can help protect what matters most to you, reach out to us with any questions on teen drivers or coverage!
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