Getting a driver’s license is a rite of passage for American teens, but this newfound liberty does come at a cost. If you’re not prepared for the spike in your auto insurance rates, you might be surprised at how much the premiums will rise when you add a teen driver to the policy. Knowing what to expect and how to lower the cost can help you be ready when it’s time for your child to get behind the wheel.
Why Do Auto Insurers Charge More for Teens?
Car insurance companies base the premiums on how likely they think you will file a claim, in addition to your credit history, local crime rates, and demographics. Because they know that teenage drivers cause more accidents than any other age group, they’ll charge more to offset that risk.
How Much More Will You Pay?
Depending on your local area, you should expect to pay at least 80% more for auto insurance after adding a teen driver to the policy. In several states, the rates might double. However, there is a great deal of variation. For instance, males will cost significantly more to insure than young female drivers since they statistically cause more accidents.
How Can You Lower Costs?
While there’s no way to escape a rate hike, there are steps you can take to reduce the cost of insuring your teen. Speak with an insurance agent to make sure you’re getting every discount you qualify for. You might also consider purchasing a less expensive car for your teen and a separate policy, which might be more affordable in the long run.
As agents for one of North Carolina’s most trusted auto insurance providers, Randolph County Farm Bureau is dedicated to helping you get the coverage you need at the best rates possible. If you’re planning on adding a teen driver, you can rely on them for cost-effective solutions tailored to your needs. To learn more about their products, visit their website. Call (336) 629-9187 for their Asheboro location or (336) 822-9573 for their Randleman office to request a quote.