Insuring teenagers is expensive because younger drivers are more likely to get into car accidents than older drivers with more experience. National Highway Traffic Safety Administration (NHTSA) statistics show that the leading cause of death among 15- to 20-year olds is vehicle collisions.
Consequently, insuring your teen driver comes with a high price tag – a premium increase of 44 percent if you have one car; 58 percent for two cars; and if you have a third vehicle, premiums can increase by 62 percent, according to the Insurance.com article "Adding A Teen To My Car Insurance Policy Costs How Much?"
Having a separate auto insurance policy for your teen is an option but generally a more expensive one. The average car insurance policy for a teen driver can run $2,267, which is probably significantly more than the increase you might see on your existing policy.
For parents, teenagers behind the wheel of a car can be a scary thought, not only from a safety aspect but financially as well. Here are four strategies that can minimize your auto insurance premiums while insuring your teen driver has the proper insurance coverage.
Once licensed, don't forget to add your teenager to your policy. Intentional misrepresentation could result in cancellation of your policy or refusal by your auto insurance company to pay a claim. Some companies may pay the claim and then back-charge you for the premiums, but don't take it for granted that they will.
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