It’s no secret that the younger the driver, the more of a risk they pose in the eyes of insurance companies. That’s why drivers get a break when they turn 25 years old, but that’s also why teenaged drivers—especially males—can cause the insurance costs of their parents to soar.
Kate Rogers of Fox Business reported that very recent data from InsuranceQuotes.com revealed that it can cost a married couple about 84% more when they add a teenager onto their auto insurance policy. The data showed that parents of females will pay 72% more in their premium, while parents of males will pay a whopping 96% more in car insurance. The article quotes Laura Adams, the senior insurance analyst for InsuraceQuotes.com, as saying that teens are the riskiest and most expensive drivers to cover, so insurance policies make it worth their while to insure them by collecting high rates.
FinanceSpectrum.com wanted to acknowledge some ways that parents can save a little on insuring their kids when it comes time for them to get the almighty license. Rogers stated that the price difference varies from a 16-year-old, 17-year-old, 18-year-old, and 19-year-old in terms of insurance. 16-year-old drivers’ parents experience a 99% spike in their premium, where for example the parents of a 19-year-old will only have a 65% increase. With this in mind, it might be tempting to parents to delay their kids driving as soon as they are legally allowed to. Other ways to save that Rogers recommended include getting good grades and taking a defensive driving course for about $25 online.
We wanted to add to the list, so that parents have as many options as possible to reduce insurance premiums. Something to consider is that the type of car your teenaged son or daughter is driving is a factor when it comes to insurance rates. Something like a top-heavy SUV or a sports car is going to cost much more to insure, as opposed to a model with tons of safety features like good air bags and anti-lock breaks. Many parents don’t know this, but if your kids go away to college more than 100 miles from you and are not driving a car at school, parents can get a deal where they pay a minimal amount for coverage each month but the college students are still covered when they’re home for the holidays or other trips. It’s far less expensive than keeping them on the insurance ‘full-time.’ And of course, it’s wise to add your teen to your current policy when they begin driving instead of getting an individual policy for them because your discounts will still be applied to the cost.