Will My Auto Insurance Rates Increase If My Teen Gets a Learner’s Permit?
When a teenager obtains a learner’s permit or reaches legal driving age, the young motorist’s parents or guardians will likely have their rates increased. Policy prices are largely influenced by the likelihood that a motorist driving the insured vehicle will be involved in an accident or file a claim. When insurance companies rate vehicle owners, they commonly take into account every motorist living in the same household because of the possibility that they may operate the insured vehicle. And, unfortunately, poor accident statistics for younger drivers often lead to the conclusion that motorists between the ages of 16 and 25 are high risk drivers, and this leads to higher rates.Multiple studies conducted by the Centers for Disease Control and Prevention and other institutions have found that motorists between the ages of 16 and 25 are more likely to be involved in an automobile accident than drivers from any other age group. The National Academy of Sciences attributes this high crash rate to a general lack of skill, traffic knowledge, maturity, and overall experience behind the wheel. Insurers are aware of these findings and charge more for vehicle coverage to compensate for the added risk associated with there being a nonstandard motorist living in the same household. This is also why it’s often difficult to find cheap car insurance for teenagers who choose to get a policy of their own.
Managing Coverage Costs with a Teen Driver in the House
There are steps that policyholders and younger motorists can take to help decrease coverage costs. Many insurance companies offer discounts that are specifically tailored for teenage drivers. It’s common to find insurers offering rate reductions to young drivers who can maintain a 3.0 GPA while in school. Additionally, some companies lower rates for teens who major in a specific field of study or belong to a specific club or organization. Motorists are encouraged to contact their coverage provider to learn about any potential savings that may be available.
Many parents or guardians also have the option of excluding their teenager from their insurance policy. Adding a young driver to a parent’s list of exclusions creates an understanding between the insurer and the policyholder that the teen in question will not operate the insured automobile. This can often help the primary policyholder maintain cheap auto insurance by lowering coverage costs. In some states, however, a motorist must prove that the excluded driver has purchased adequate vehicle coverage through another company.
Although a parent or guardian’s rates may increase once their teenager has reached legal driving age or has obtained a learner’s permit, there are still various ways to help reduce coverage costs. Motorists are encouraged to call their insurer directly for recommendations or to shop around for a lower-priced coverage provider.