Teen Drivers, what will this cost?

They are ready to hit the road!

They are ready to hit the road!

Now what?  We can help you navigate through this new stage of life.

Educate your teen now about insurance

Educate your teen now about insurance

Ask us about things you can do to help prepare your teen for understanding the financial obligations associated with driving

Teen Driving Guide

Every year, teen drivers are involved in 900,000 crashes, and more than 2,500 teens died in motor vehicle accidents in 2017, according to the U.S. Department of Transportation.

Our first priority is helping you take care of yourself and your family.  The teen driving guide is provided by Consumer Notice and it covers topics such as understanding the risks of driving, safe driving tips and how parents can help.  Taking a proactive step in your teen's driving can help them to develop good habits and ultimately prevent accidents and save money.

Go to the teen driving guide

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.

  1. If they have their own car (Full time driver)
  2. 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.

How do I lower the premium for my teen driver?

There are 3 main credits that can be given for a teen driver.

  • Good Student Discount
    • This is generally based on having a B+ average or better.Most companies will accept either a Grade Point average or a current grade report card.
      • The grade report must be current
      • Young driver must be currently enrolled in school
    • This discount is usually available until at least age 23
  • Away at school discount
    • This discount applies for students that attend a school that is over 100 miles from home and reside at school
    • They can’t have their car with them at school
    • This discount is usually available until age 23
  • Drivers training discount
    • Some companies will provide a discount for young drivers that have completed a driver education course.
    • Proof of completion is required for this discount

If my teen has an accident, how will this affect my insurance premium?

Teen accidents will impact your premium on a much larger scale than an accident by an adult driver. There are a couple of reasons for this.

  • The premium increase is based on a % for the cost of the car that the offending driver was rated on. Since the premium is higher in general on this car, the actual cost is much higher.
  • A typical surcharge for an accident would be a 30% increase and a second accident could result in a 70% increase.

If my teenager gets a ticket, how will this affect my premium?

  • A ticket is a bit more forgiving than an accident in that a typical surcharge would be 10% but a second ticket could lead to a much higher surcharge.
  • Not all tickets are created equal. There are different classifications of tickets from very serious or aggressive to minor infractions.
    • Speeding less than 10 over the limit would normally be considered minor
    • Speeding 25 over the limit would normally be considered a more aggressive ticket
    • Passing a school bus, driving on the shoulder or disregarding railroad crossing are all more aggressive tickets
    • DUI is the mother of them all
  • Statistically if a teen receives a ticket while driving, they have increased the likelihood that they will have an accident. This is a sign of riskier driving.

When does my premium start to go down for my teenage driver?

  • Some companies will start to lower the premium after 1 year of driving experience (assuming no tickets or accidents)
  • In general, you will see some breaks in the cost at ages 18, 21 and 24

What can I do to support my teen driver?

  • Involve them in the insurance process. Many kids have no understanding of how their actions affect their insurance premiums. Start them early with getting the pricing for adding them on to the family auto policy.
    • Discuss tickets and accidents before they happen and how they could impact their premiums
    • Discuss grades and their impact to insurance premium
  • Have them pay their part of the insurance premium or some portion (kids that help pay their premium have fewer tickets and accidents)
  • Discuss distracted driving with them (leading cause of accidents)
  • Tell them what to do if they should have an accident