Safe Auto Insurance: Teen Rates Explained

Car insurance rates for teenagers are notoriously high. In fact, teens and young drivers pay twice as much for insurance as 35-year-olds. The average cost of car insurance for teens is $5,769 per year or $481 per month. This is because insurance providers consider young, inexperienced drivers to be a high risk. Teen drivers are more likely to be involved in accidents and are therefore more likely to make insurance claims.

However, there are ways to save money on car insurance for teens. One way is to add a teen driver to a parent's or guardian's policy, rather than taking out a separate policy. Another way is to shop around and compare quotes from multiple insurance companies. It's also worth looking out for discounts such as good student discounts, student-away-at-school discounts, and defensive driving course discounts.

Teenage boys are more likely to be involved in accidents than girls

Auto insurance rates for teenagers are high, and male teens are charged more than female teens. This is because male teens are statistically more likely to be involved in road accidents than female teens.

Research from the CDC points to several reasons why teen drivers are likely to be involved in car accidents. One of the main reasons is a lack of experience. Teen drivers have triple the fatal crash risk of older drivers because they do not yet have the skills to recognize and avoid road hazards. They often spot hazardous situations later than more experienced drivers and are more likely to underestimate the dangers of a potentially harmful situation, sometimes resulting in critical errors that lead to crashes. The risk of an accident is highest during the first few months after a teen has gotten their license and decreases as they gain experience on the road.

Another factor is distractions, especially the use of cellphones while driving. In 2015, the CDC found that 42% of high school students who had driven in the past 30 days admitted to sending a text or email while driving. Students who texted frequently were also more likely to engage in other risky behaviours, such as drinking.

Driving with friends is another risk factor. There is a link between the number of teen passengers and increased crash risk when an unsupervised teenager is driving. The presence of teen or young adult passengers increases the crash risk of unsupervised teen drivers, and this risk increases with each additional passenger.

Speeding is also a factor that contributes to accidents, and risk-taking behaviour increases with male teen drivers, especially if there are male passengers. Weekend and night driving also increase the risk of fatal accidents, with half of all teenage deaths from car crashes taking place between 3 pm and midnight, and 53% of fatalities occurring over the weekend.

Other factors that increase the likelihood of accidents include drinking and drug use, as well as lax seatbelt use.

To address these issues, parents can play an important role in keeping teens safe on the road by setting clear rules and expectations, such as always wearing a seatbelt and not driving with other teen passengers. Graduated Driver Licensing (GDL) systems can also help, by enabling new drivers to gain experience under lower-risk conditions and imposing restrictions on nighttime driving and the number of passengers.

Teenagers are considered high-risk drivers due to their lack of experience

Safe auto insurance rates are not low for teenagers. In fact, insurance for teen drivers is notoriously pricey. The typical teen pays $1,332 for car insurance on their parent's policy every six months. Male teen drivers should expect to pay more than female teen drivers — $1,407 for a six-month insurance policy for a male teen versus $1,257 for a female teen. Per month, male teen drivers pay $25 more for car insurance than female drivers on their parents' auto insurance policy.

This is because teenagers are considered high-risk drivers due to their lack of experience. Teen drivers have crash rates nearly four times those of drivers aged 20 and older per mile driven. Their immaturity leads to speeding and other risky habits, and their inexperience means they often don't recognize or know how to respond to hazards.

In the United States, car crashes are the leading cause of death among teens. In 2022, 2,898 teenagers (ages 13–19) died in the United States from crash injuries. Such injuries are one of the leading causes of death in this age group.

The fatal crash rate per mile driven for 16–17-year-olds is about three times the rate for drivers aged 20 and older. Based on police-reported crashes of all severities, the crash rate for 16–19-year-olds is nearly four times the rate for drivers aged 20 and older. Risk is highest at age 16.

Crash risk among teenage drivers is particularly high during the first months of licensure. For example, data indicate that the crash rate per mile driven is about 1.5 times as high for 16-year-old drivers as it is for 18–19-year-old drivers.

Teens are more likely than older drivers to underestimate or not be able to recognize dangerous situations. They are also more likely than adults to make critical errors that can lead to serious crashes.

To address these problems, all states and the District of Columbia have enacted Graduated Driver Licensing (GDL) laws to give teen drivers more time to learn under less risky circumstances. GDL laws vary from state to state but all GDL approaches consist of three stages: a learner's permit, an intermediate (provisional) license, and a full license.

Insurance rates for teens vary depending on the state

Insurance rates for teens can vary depending on the state and other factors. In the US, the average rate for full-coverage car insurance for a 16-year-old driver is $7,149, while a 17-year-old pays $5,954 annually. The younger the driver, the more expensive the car insurance. This is because statistics show that young drivers are far more likely to get into car accidents than older drivers.

The cost of car insurance for teens in the US also varies by state. For example, Connecticut, Louisiana, Nevada, and New York are some of the most expensive states for teen car insurance. On the other hand, Nevada, New Jersey, and New York are the most expensive states for teens with minimum coverage insurance.

When it comes to insurance providers, Travelers and Geico offer the cheapest car insurance for teens, with average annual rates of $4,834 and $5,315 respectively. However, other providers such as USAA, State Farm, and Erie also offer competitive rates and various discounts for teens.

To find the best rates, it is recommended to shop around and seek out teen driver discounts. Additionally, there are several ways to lower insurance costs, such as choosing a higher deductible, choosing the right car, or delaying getting a license.

Adding a teen to a parent's policy is usually cheaper than a standalone policy

Adding a teenager to their parent's insurance policy is usually cheaper than a standalone policy. On average, teens can save anywhere from $503 to $3,163 by staying on a parent’s policy.

Firstly, insurance providers require you to list all licensed drivers residing in your home on your auto insurance policy. Therefore, once your teen passes their driving test, you are obliged to add them to your policy. Driving without insurance is illegal in most states and has legal ramifications if you are caught.

Secondly, purchasing standalone car insurance is not an option for most teens because of the high cost. The average cost of insurance for teens is $5,769 per year or $481 per month. This is more than twice the annual rate of $2,681 for 35-year-old drivers.

Thirdly, insurance companies view young drivers as high-risk clients. Statistically, young people represent the highest rates of traffic-related deaths and injuries among all age groups. This is due to a combination of immaturity and inexperience. Young drivers are also more likely to be involved in serious accidents. In the US, car crashes are the leading cause of death among teens.

Finally, there are a few ways to lower insurance costs for teens. Insurance providers offer several discounts to reduce car insurance costs. For example, good student discounts are available for students who maintain at least a B average. There are also driver's education discounts for those who take driver training courses.

Safe driving programs can help teens improve their driving skills and reduce insurance rates

Safe driving programs can be incredibly beneficial for teens, helping them improve their driving skills and reduce insurance rates. These programs are designed to teach young drivers the rules of the road and safe driving habits, which can ultimately help them become safer, more responsible drivers.

One such program is the UPS Road Code, established by UPS and the Boys and Girls Clubs of America. The program is taught by UPS employees who are trained as volunteer driving instructors, and it provides teens with a combination of classroom instruction and virtual driving simulations. The focus is on safety principles, from basic driving techniques to the consequences of distracted driving.

Another effective program is Alive at 25, a 4.5-hour driver's awareness course designed by the National Safety Council for 15 to 24-year-olds. The program teaches defensive driving techniques, decision-making skills, and responsibility-taking through workbooks, classroom instruction, discussions, and role-playing.

The B.R.A.K.E.S program, started by NHRA drag racing star Doug Herbert, teaches practical skills such as emergency braking and controlling a vehicle in icy or wet road conditions. This program is held in select communities across the United States for teens between the ages of 15 and 19 and has been shown to make teens eligible for reduced insurance rates.

Additionally, teenSmart is an at-home program that teaches driver safety through computer software, workbooks, and DVDs. It offers simulations focusing on the six factors that cause most teen collisions, including visual search, hazard detection, and speed adjustment.

By enrolling in these safe driving programs, teens can not only improve their driving skills but also demonstrate their commitment to safe driving, which can result in reduced insurance rates. These programs empower young drivers with the knowledge and skills necessary to make smart decisions behind the wheel, ultimately contributing to safer roads for everyone.

Frequently asked questions