Will My Auto Insurance Policy Increase If I Add My Teenager?
Adding teens to auto insurance policy could raise premiums 50% or more.
If you have a teenage son or daughter and are considering adding them to your automobile insurance policy, it may surprise you to see just how expensive this addition might be.
Insuring Teenage Drivers On Your Auto Insurance Policy
If you are anticipating adding your teenage son or daughter to your auto insurance policy, it can be a costly endeavor, raising your premium by as much as 50% or more. This is mainly because most insurance companies base their rates on the number of years a person has been driving, not on their age. Therefore, it stands to reason that a teenager who just obtained a license has not accumulated years of driving experience. There are companies that do offer auto insurance policy discounts for teenage drivers, and it pays to get information and quotes from as many as possible to see which companies offer the best premiums.
The Good Student Discount
If a student has an outstanding school record, auto insurance policy increases can be lowered by as much as 25%. This usually means that a student must have a B (or 3.0) average or better in order to qualify. By making this a mandatory requirement for a teenage son or daughter, a family can save a substantial amount of money when it comes time to add the teen to an auto insurance policy.
There are also companies that offer ‘new driver’ discounts. These companies require that both parents and teen drivers fulfill certain requirements that are similar to driver’s education courses before any discount is applied.
The Car A Teen is Driving Matters
If your teen is driving one of your vehicles, as opposed to driving his or her own vehicle, auto insurance policy premiums will be higher. If your teen owns a vehicle, he or she is not considered a primary driver of your vehicle; thus, rates will be lower. Another point to consider is if your teen is driving an older, less expensive vehicle, the insurance rates will be lower. The more the car is worth, the more the insurance will cost.
Related posts:
- Why Is Teenage Car Insurance So Expensive?
- Can I Add My Teenager To My Present Auto Insurance Policy?
- Can I Add My Teenager To My Present Auto Insurance Policy?
- How Do I Determine Teen Car Insurance Needs?
- How Much Does It Cost To Obtain Car Insurance For a Teenage Driver?
