How Much Does a New Teenage Driver Raise Car Insurance Premiums?
If your teenager is now old enough to drive, you are likely wonderting how much adding him or her to your policy will affect your car insurance premiums. How much a teenage driver raises car insurance premiums depends of a variety of factors. With a bit of careful planning, you can insure your teenage driver without paying exorbitant rates.
Avoid Putting Your Teenage Driver on His or Her Own Policy.
You may be thinking about getting a separate policy for your teenage driver, but this is typically the most expensive option. Many insurance companies use an “averaging” system that accounts for the relative risk of all drivers, and assigns an averaged rate to each driver on the policy. A teenage driver on a separate policy could end up costing $2,000 a year or more. By putting your teenager on your existing policy, you could cut this figure by 50 percent or more.
Choose a “Safe” Car for Your Teenage Driver.
Your teenager would probably prefer a new sports car, but choosing a family car will impact your car insurance premiums far less. Choosing a Camry, Accord, Taurus, or similar sedan for your teenage driver will raise your rates far less than choosing a Tiburon, Camaro, or other sports car. For example, buying a Camaro for your teenage driver might nearly double your premiums, while buying an Accord might only raise your rates by 25 percent.
A Newer Car will Dramatically Raise Car Insurance Premiums.
Late model vehicles cost more to insure than older cars, because the insurance company will pay out more if the car is damaged or totaled. As a car ages, the premiums necessary to insure the vehicle decrease. Also, if you buy an older car with a low market value, you can skip comprehensive and collision coverages, which can raise your car insurance premiums by hundreds of dollars per year.
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