Cheap Auto Insurance for Teenage Drivers
The terms “cheap auto insurance” and “teenage drivers” rarely go hand-in-hand. That’s because teen drivers tend to be the most accident prone on the road, according to nationwide statistics. The higher risk they pose to auto insurance companies naturally translates into higher premiums, but that doesn’t mean you have to settle for the first thing that comes along. With a little knowledge of how auto insurance for teen drivers works you’ll be equipped to find the best policy at the best price.
Auto Insurance for Teenage Drivers
When we talk about teen drivers and their insurance needs we are talking about four different groups of kids:
- those under the age of 18 still driving with their learners permit
- those under age 18 with a junior license
- those over the age of 18, living at home or at college with full driving privileges
- those over the age of 18 living on their own with full driving privileges
Under 18 with a Learners Permit
For parents whose teen children are still operating on a learners permit, the standard insurance policies they currently have will cover those teenagers without having to change them in any way. As long as your child possesses a learner’s permit, and is under the age of 18, you don’t even need to inform your insurance company in most cases.
The one thing you have to be careful of with a learners permit drivers is to make sure that they do not violate the terms of their permit. Doing so could result in your insurance company denying a claim if your teenager is involved accident. At that point it doesn’t matter whether you have cheap auto insurance or more expensive insurance, you’ll be left paying the bill out of your own pocket. You also risk having your insurance company drop you if they feel you can’t be trusted with your teen driver.
Under 18 with a Junior License
The rules regarding junior licenses vary throughout the states. But generally speaking, a teen driver under the age of 18 who passes his or her road test will be granted a junior license which will be valid until the child’s 18th birthday. At that point the junior license is converted to a senior license with full driving privileges. Both types of licenses have very specific implications when it comes to your auto insurance.
A teenager with a junior license will still be covered under his parent’s insurance unless some special circumstance exists. However, it is the legal responsibility of the parents to inform their insurance company that their child has earned a junior license. If a parent fails to do so the insurance company does have the legal right to refuse any claim brought on behalf of the teenager. Such refusals are not the norm, but they are possible.
Over 18 and Still Living at Home
If your 18 or 19-year-old has a senior license but still qualifies as “living at home” you won’t need to send him looking for cheap auto insurance quotes right away. He’ll be able to remain on your policy until age 26 (in most states) as long as he meets the requirements of living at home. To be considered a living at home, your child must be physically residing in your house or living in a dormitory setting at an out-of-town school. If he is attending an out-of-town school, your home address must be is official address of residence in order to qualify.
If your child is going to school out of town but resides in off-campus housing not officially tied to the college or university, he may be subject to that state’s residency requirements after being there for so many years. You’ll have to check with the state where your child is attending college, but in most cases you probably won’t have anything to worry about as long as he remains in school.
Over 18 and Living on His Own
Teen drivers over the age of 18 living on their own are also responsible for purchasing and maintaining their own auto insurance. For them, getting cheap auto insurance is a high priority due to the fact that they pay among the highest rates in the country. Single males between the ages of 18 and 25 are hit especially hard. They won’t see a significant reduction in what they pay until they get married or turn 26.
If you’re curious as to why this is you need only look at crash statistics compiled by any number of federal agencies. Over the course of the last 30 years statistics consistently show that young male drivers are responsible for the largest share of car crashes. Furthermore, they are also responsible for the largest percentage of deaths relating to such accidents. Teenage girls between the ages of 18 and 25 come in second, followed by senior citizens over the age of 65.
Keeping Your Auto insurance as Cheap as Possible
If you have a teenage driver with full driving privileges living in your household, there are two key things you can do to ensure your rates stay as low as possible. The first is to keep an eye on your teen’s the driving practices and insist that he always dry safely and legally. Nothing drives up insurance rates more quickly than accidents and violations. The second thing you can do is more practical than behavioral; it involves which drivers operate which vehicles.
In other words, when you have multiple drivers in the same household your insurance company assigns each one to a family car. You can keep your rates lower by making sure your teen driver is assigned to the least expensive car. The same can be said about mom and dad if one of them has a poor driving record. By matching the safest drivers with most expensive cars and the risky drivers with the less expensive ones, you’ll keep your rates down.
At the end of the day, cheap auto insurance is all about information. The more you know the better equipped you are to search for the best policies.
Young drivers are at a distinct disadvantage when they try to get auto insurance that is affordable. This is true even though they might have good driving records. Young males will pay a higher premium than young females. According to insurance statistics males are more aggressive behind the wheel than females.