• Adding a Teenager to Car Insurance: Smart Tips for Parents of Teen Drivers

    Adding a young driver to an auto insurance policy can cause sticker shock for a parent. According to TheSimpleDollar.com, adding a driver between age 16 and 19 to an auto policy caused annual premiums to increase an average of 82 percent.

    Why do insurance companies charge more for young drivers?

    Teen drivers have the highest crash risk of any age group. Their inexperience is the leading cause of accidents, and many of their accidents are severe. For example, drivers 16 to 18 years of age are 400 percent more likely to die in a car crash than drivers between 25 and 35 years old. (1)

    adding a teenager to car insurance
    Photo courtesy of Central Insurance Companies

    What are some discounts auto insurers offer young drivers?

    1. Good Student discount. This discount often applies to full-time high school and college students maintaining a “B” average or upper 20 percent class ranking. Grade and age qualifications can differ between insurance companies.
    2. Away to School discount. Discounts may be offered when a student attends school over 100 miles from their home and does not take a car to school.
    3. Driver Training discount. This discount often applies when students successfully complete a certified driver education course that satisfies a minimum number of hours in the classroom and on the roads gaining driving experience.

    How can you better protect your teen and save money?

    Many driver’s training programs focus on passing the driver’s test. ADEPT Driver (Advanced Drivers Education Products and Training, Inc.) instead focuses on reducing collisions. This organization’s teenSMART program identifies and addresses the following six behavioral and social factors that cause more than 90 percent of all teen collisions. (2)

    1. Visual Search
    2. Hazard Detection
    3. Speed Adjustment
    4. Space Management
    5. Risk Perception
    6. Lifestyle Issues

    teenSMART is the most widely evaluated and tested teen driver safety program. It has been proven to improve drivers’ knowledge, skills, and behavior. In fact, graduates of this program have up to 30% fewer collisions than teens who don’t enroll. That helps explain why more state Departments of Insurance have approved insurance carriers to offer larger discounts for the teenSMART program than for any other teen-cash reduction plan.(3) Discount or not, it’s a good idea for any teen that is of driving age to complete this course, as it could one day save his or her life. To learn more about it, visit http://www.adeptdriver.com/products/teensmart/.

    In addition to money-saving tips when it comes to adding a teenager to car insurance, it’s also a good idea for parents to ride along with their children often and have them practice different driving scenarios. Don’t forget to be a good role model when you are driving, as your children are watching! Sit down with your son or daughter to share your concerns and set rules regarding night driving, seat belt use, cellphones/social media, passengers in the car, etc. Handing over the car keys to your teen can be nerve wracking to say the least; we hope these tips ideas will help ease both your fears and the impact on your finances.

     (1) http://www.teensmartdriving.com/

    (2) http://www.teensmartdriving.com/what/

    (3) http://www.adeptdriver.com/company/

    Post authored by Lorali Todd. Originally published September 22, 2017. View original post at: http://wp.me/p1Iv7E-2w1

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    Copyright © 2017 Central Mutual Insurance Company. All rights reserved.

     

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