Is purchasing teen car insurance on your to-do list? Your teen is finally taking a major step toward independence, and while it’s exciting, it can be a little scary too, especially for parents.
Besides helping your teens practice their driving maneuvers and teaching them about road safety, you also have to make sure they’re fully insured before they set out on the roadways alone.
Paying for teen car insurance is a major expense for many households. According to a 2014 study by InsuranceQuotes.com, the average annual car insurance premium jumped 89 percent in Utah when a teen driver was added to a policy. Teen boys added the largest price hike, making the premium skyrocket 106 percent. Teen girls caused the premium to jump 72 percent.
The basis for these premium price increases is simple: teenagers are in car accidents more often than older, more experienced drivers. The American Academy of Pediatrics reports that one-third of all deaths of people between the ages of 16 and 20 are due to car accidents.
When you realize how much you’ll have to pay for teen car insurance, you may get sticker shock, but there are ways you can save on premiums.
First, it’s important to understand the process of getting a license in Utah. Utah abides by a graduated driver licensing program (GDL), which is proven to reduce fatalities and make roadways safer. Once teens turn 15, they can apply for a learner’s permit.
While they have a learner’s permit, they have to drive with their parent or a driving instructor, and there is a list of rules that goes along with their permit privileges. You don’t have to buy teen car insurance while they have a learner’s permit only — just let your insurance company know.
Once they turn 16, they’ve had a valid learner’s permit for at least six months and they’ve completed their necessary driving hours, they can apply for a minor driver’s license. After they pass their test, then it’s time to adjust your coverage.
When you talk to your insurance company, make sure you ask for a discount if your teen has at least a B average. Many companies offer a discount for good students.
You can also sign your teen up for a defensive driving course. This is another good way to get a discount and keep premiums down.
It’s going to cost a lot more if you’re insuring a teen in an SUV or truck. A mid-size sedan with modern safety features is the best option for your teen, and insurance companies agree.
You should also consider whether to list them as the main driver or as the occasional driver. This can affect premiums as well.
As a parent of a teen driver, your most important goal is to keep your teen safe on the roadway. You can help by setting up rules regarding when and where they are allowed to drive. Consider writing a teen-parent driving agreement that includes rules about cell phone and seat belt use.
Trust Four Seasons Insurance for guidance navigating teen car insurance and finding a low-cost premium that fits your budget. Call today for a free quote.