Teen Car Insurance – Good to go insurance

teen auto insurance

At the top of nearly all teens sweet 16 birthday wish list is a new drivers license and a car. What teens often don’t consider and parents dread is the extreme cost of insuring teenagers. In 2013, according to the insurance institute, the average monthly premium for a teenage driver was about $2,230 per year. This breaks down to $185 monthly. Teens that have reckless driving tickets, or at fault accidents can pay up to $5,000 annually, just for auto insurance. How many teens out there can afford $400 a month for insurance, in addition to the car payment, upkeep and gasoline costs?

Why teen auto Insurance is expensive

The lack of driving experience for this group of drivers aged 15 to 19 is a real risk factor to insurers. Stats just don’t lie and teens get in more accidents on average than older, more mature adults. It’s a sad reality that the number one killer of teens is automobile fatalities. These insurance claims are extremely expensive and insurers pass along these costs.

Teen texting and driving
Today, car insurance companies have been forced to raise rates due to a new threat: teen texting while driving. Teen fatalities have spiked in recent years due to the addictive hold texting has on young people.

teen texting and driving

Teens think that they can properly drive and text at the same time but the jump in teen driving fatalities can be attributed to these and other devices teens can’t let go of. Last year there were 3,000 reported automobile fatalities due to texting while driving, making it the number one killer of teens, according to an auto safety report.

Around 2,700 teens were killed as a result of alcohol related accidents
While most teens have gotten the message that drinking and driving is not worth it, the message hasn’t apparently sunk in about driving while texting. More than 50% of teenage drivers actually admit that they drive and text on a regular basis. So teens in relation to other drivers are more riskier than ever. Auto insurance companies have been forced to raise rates to offset the high claims that result from teen texting fatalities. The safe and responsible teen drivers actually get punished by the behavior of the irresponsible drivers in the form of higher car insurance rates.

Teen boys cost more to insure than girls
Teen boys are the riskiest drivers and pay more for girls of the same age. This again is due to the data that shows boys get more reckless driving tickets, more DUI’s and are involved in more accidents than teen females.

Lets look at some basic ways teens can lower their auto insurance costs and save some serious money

Teen auto insurance tips
1. Get on the parents or guardians policy. A teens parent that already has a relationship with an insurer will get a better rate in nearly every case than a teen going out and buying a separate policy. If a teen has purchased a vehicle, then their parents will also get a bundled insurance discount of around 20% once they add the vehicle onto the policy. If your parents have multiple cars, teens should only get designated to drive the car that’s cheaper to insure. For example, lets say dad drives a BMW 740 and mom drives a used 2007 Toyota Camry. The teen should be assigned the Camry only, which will really lower the premiums as opposed to having the kid also insured for the BMW.

2. Purchase a used car. Older cars that are purchased in cash do not require expensive collision insurance, which can really amount to hundreds per year. There are several car brands such as a Honda Accord and Toyota Camry that are less to insure for teen drivers.

3. Don’t get a sports car. Nearly all boys dream of a new mega horsepower Corvette or a fancy Mustang, but the insurance is just outrageous on these cars. The faster the car is the more the auto insurance will be. The more boring the car is with great safety features, the less the automobile insurance premiums will be. There are some cool cars that insurers don’t penalize with rate hikes too much like the Audi A3 and A4. In addition, the Toyota Prius is fun to drive, gets amazing gas mileage and is cheap to insure, even for teens.

4. Take a certified safety class. Most all auto insurance carriers offer discounts to teens who complete a driving class. The classes only take a couple of days and can save $200-$300 annually. Driver safety classes are not only good investments but more importantly can save a teens life.

5. A good GPA. Having and maintaining a GPA average of 3.0 or higher demonstrates maturity and discipline that insurers will recognize with a discount, often 10%. Learning is not only valuable, it can save you some money.

6. Get a higher deductible. If you can afford it, raise the deductible to $1,000 or more. You will save money for sure but this also means the teen driver needs to be extra careful to avoid accidents. Considering 16 year old teens are three times more likely to get into accidents than 19 year olds, it might be smart to raise the deductible once the teen has at least reached the age of 17 and demonstrated responsibility with good driving habits.

7. Shop online. With the power of the internet it’s possible to check teen insurance rates with up to 200 insurance companies in just a few minutes. Several companies such as Good to go insurance have special rates for teens who are good drivers. Use the free calculator at Good 2 go to get a quick estimate of how much you can expect to pay.

Now that you know how to lower teen auto insurance rates, get a free online auto insurance quote now.

Posted by: Toni Kohonen