How much is car insurance for a 16 year old?
If you’re a parent preparing to put a teenage driver on the road, then you’re in for some sobering news. Because teen drivers are one of the most accident-prone demographics, acquiring auto insurance for them could be expensive and even difficult if your own driving record is imperfect.
Why Is Car Insurance for Teens So Expensive?
As we mentioned above, teens have more accidents and other automotive infractions than their older peers. This means that teens in general are considered “high-risk” drivers, and that designation comes at a cost to anyone trying to insure them. Insurance is only profitable if providers minimize their risks; since teen drivers are an obvious risk, they need a greater initial investment to bridge the risk vs gain gap and make insuring a teen driver worthwhile.
How Much Is Car Insurance for a 16 Year Old?
There are many variables that can affect the final price of insuring a 16 year old driver. Gender matters, since male teen drivers are higher risk than female drivers. The amount of coverage you want will also affect your final rate. For example, the cost of liability insurance will be approximately half the cost of collision coverage. Driving distance will affect your teen’s final rate, as will the year, model and safety features of their car. Location is also important; it may cost in excess of $2000/year to insure a teen driver living in an urban area, while rates for a rural teen driver may be half that.
How Can I Save Money Insuring My Teen Driver?
You can save money by adding your teen driver to an existing insurance policy and by limiting their drive time to necessary events like school or work. Good grades can also earn your child a hefty discount.
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