Teen Driving Awareness
In the current insurance market, having a teen on your policy can be monetarily detrimental. Our goal as agents is to prepare you for the insurance landscape you may be facing. The price is shocking to many clients, but there are reasons behind the ratings, and ways to mitigate costs.
When adding a teen driver to a policy, you may see your rate increase close to three thousand dollars a year. We know, this seems ridiculous. It is, don’t get us wrong. But teen drivers make up most of vehicular deaths on highways , and carriers rate based on risk. Insurance companies have always charged young drivers, but right now they are ruthless in their rating. The best thing you can do is make sure that your child is ready to be on the road and ask about discounts for them. Different carriers offer unique discounts, but most offer these: The good student discount. Your young driver may qualify for this if you submit their report card and they have mostly As and Bs on their report card. Another discount that is usually offered is when your child is over 100 miles away from home and at college. These options should be explored by your agent when putting on an additional driver.
Another obstacle to be aware of is if you have a young male driver, he will be highly rated for a number of years because “Male teens are over 120% more likely to suffer fatal crashes than female teens and account for 69% of all deaths.” There is data supporting that young male drivers are the most likely demographic to get into an accident. If you have high limits of liability, or expensive vehicles, and you are adding a young man to your policy, expect a very large increase to your premium. If your premium skyrockets, you may want to investigate your rate to make sure you are getting the best possible price and coverage.
