Your new teen driver is hitting the road but are you ready for this? We can help you to prepare for this milestone.
How much does it cost to insure a new teenage driver?
A good rule of thumb is that a teenager will cost you 2 to 3 times the premium that you are currently paying on your car.
There are 2 main criteria that will affect the cost to insure your new driver.
- If they have their own car (Full time driver)
- If they share a car (occasional driver)
Insurance companies determine which applies to your teenager by applying a rating rule of number of cars versus number of drivers. Simply put if you have 3 cars and 3 drivers, by their definition each driver must be listed as a “ full time” driver on a car.
If you have more drivers than cars, then a teenage driver can be rated as an occasional driver on a car.An example of this is 3 drivers in the household and 2 cars.An exception to this rule would be if the teenager was to own 1 of the cars.If they own the car (listed on the title), then most insurance companies would require them to be listed as a “Full Time” driver.
What is the difference in cost between these 2 designations?
Typically, you can expect that when adding a part time driver that they will impact the cost of the insurance by double.If you were paying $1000 to insure your car currently, then adding a teenager would cost about $2,000 for that same car.
If your teenager was designated as a “Full Time” operator then the cost would be about 3 times.If you were paying $1,000 on a car before and now you have added your young driver then that same car would cost about $3000 to insure.