Insuring a Teen Driver

Teenagers love the sense of freedom and control they get from driving a car. With license in hand, the world is theirs, but sadly, the auto insurance bill is yours.

According to the Center for Disease Control (CDC), young people ages 15-24 represent only 14 percent of the US population, yet they account for 30 percent of motor vehicle injuries among males and 28 percent of motor vehicle injuries among females.

The fact that most teens are lousy drivers can raise your insurance rates 50 to 100 percent, and knowing that they are out driving on their own can raise your blood pressure by even more than that.

But wait—don't take away your teenager's car keys just yet. You can save money and peace of mind. Car insurance companies often have certain stipulations that, if your teenager meets, can save you money and keep them safer.

Sensible Sedan
No sports cars for the kid, period. Not only will you take a bigger hit in insurance, but the chances of your teen having an accident increases when they are driving a sports car. Sedans are the way to go.

Hit the books
If your child maintains good grades, usually over a 3.0 GPA, many insurance companies will discount your premium by up to 15 percent.

Drivers Ed
If your teenager graduates from a drivers education class you will most likely see a break on your premium. It is also a much quicker and safer way to go about getting one’s drivers license.

Look around
You don’t have to go with your current insurance company (that probably holds your life insurance and homeowners insurance as well as auto insurance) to insure your teenager. You can use this fact as leverage when talking to your insurance company about adding your teen as a driver. Your insurance company should be able to give you a deal. If they can’t, be sure you shop around.

Higher deductible
You can lower your monthly payments by increasing the deductible, but this is always a gamble. Whatever you do, don’t increase the deductible by more than you can afford to pay out if there is an accident.

College in New York!
Okay, this might also break the bank, but if the kid goes to college in New York City, there will be no need for a car, will there?

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