Automotive

Can you Get Cheap Car Insurance Rates for Teens?

When you start looking for car insurance, you will find a zillion companies with varied rates. While many companies provide inexpensive coverages, you will always have a money issue finding cheap insurance for teen drivers. But why is it so? Is it the age that matters, or are there other factors? Let’s find out.

Multiple parameters are considered when finding average car insurance rates by age and gender. But there’s one factor that is always the reason for the hike in insurance rates, and it is the Risk. The more risk a driver has, the more s/he will pay. It doesn’t matter whether s/he is 15 or 75, your residential area, your car safety features, and other factors collectively determine how risky it is for a person to drive. 

The more risk, the more the insurance price. And it is not just in the case of vehicle insurance. The same happens in healthcare. Sometimes the risk is so big that insurance companies deny giving health insurance to the patient. Now, you must be wondering, can you get life insurance if you have heart failure?. Well, yes, you can, but again you need to pay more.

Coming back to cheap car insurance rates for teens, is there a way to land cheaper insurance for the young adults in your house? 

Why are Car Insurance Rates Expensive for Teens?

You already know the risk is an important factor in determining the actual price you will pay to your insurance company, but you don’t know yet why. Considering the age of the driver, be it sixteen, seventeen, or eighteen, think to yourself how much experience a teen driver has. A few months of training, probably a year at most, but no more than that.

Less experience means that the driver is more prone to collisions and accidents than a mature driver.

Obviously, a driver of the age of 30 will have a better experience. S/he will know how to handle the vehicle in difficult situations and might even know how to get out of an incident without damaging the vehicle. On the other hand, a teen driver who has barely even learned how to drive would never know such things. 

That’s why it becomes super important for teen drivers to have insurance, even if it is expensive. 

Did you know teen boys pay higher insurance rates than teen girls?

It is what it is!

You must be wondering why would male teen drivers pay more than females! Well, according to many surveys and after good research, it has been found that female drivers in the teenage drive better than boys of the same age. One can debate about the maturity levels of the genders only if one has enough time to do so. Moving on, is there a way to reduce these prices, by any chance? 

How Much is Car Insurance for Young Adults?

While determining the exact price is difficult, you can get an idea using various online quotes. You should see whether your teen drives a car or a truck to his/her college. The risk factors of the vehicle will also be a parameter.  

For a 17-year-old teen, the average car insurance is around $8,441 per annum or $737 per month. If you compare it to the insurance rates of adult drivers, then it is a huge amount. 

For an 18-year-old teen, the average car insurance is around $7,396 per annum or $616 per month. 

For a 19-year-old teen, the average car insurance is around $6,182 per annum or $515 per month. 

The prices may vary by different companies as all companies consider the same parameters differently. 

Companies Providing Best Insurance to Teens

You will find many companies in the insurance market that provide basic to full coverages. Prices may vary, but the average range is only from $4,807 to $13,718. As mentioned above, boys pay a lot more than girls, so choose a company wisely. 

Always do good research before landing on a company. Ask for discounts, there is a student discount at many insurance companies so that you can avail yourself of that also. Moreover, never choose a company that is reviewed badly. There is a reason companies like USAA, Nationwide, Progressive, State Farm, and American Family have a reputation. 

Doing thorough research before settling on an insurance company is only going to help you. You can also choose to add your teen to your family’s insurance. But that only works if your teen has to travel to the same city as yours. If s/he has to move to another city, then your family car insurance might not work. 

That was all about this article, if you found it helpful, then share this article with your family members.   

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