Teen Auto Insurance: Oregon's Underage Exception

In Oregon, 17-year-olds can get their own car insurance, but there are some important things to consider. Firstly, a 17-year-old is considered a minor and therefore a parent or guardian must co-sign their insurance policy. This means that parents will be responsible for any incidents that occur when their teen driver is behind the wheel. Additionally, a 17-year-old cannot legally own their own car, as minors cannot own property.

While it is possible for a 17-year-old to get their own insurance policy, it is generally more expensive than being added to a parent's policy. The average cost of insurance for a 17-year-old female is $4,137 when included on her parents' policy, and $9,852 when on her own policy. For males, the average cost is $5,851 when included on his parents' policy, and $11,992 when on his own policy.

There are ways to reduce the cost of insurance for 17-year-olds, such as getting good grades at school, taking a defensive driving course, driving a safer car, and shopping around for the best rates.

A 17-year-old can get their own insurance policy if a guardian or parent co-signs

In most states, a 17-year-old can obtain their own car insurance policy separate from their parent's policy if they have a guardian or parent co-sign. This is because minors (those under 18) are typically not legally allowed to sign a contract. A co-signer is also needed because an insurance policy is a legally binding contract. When a parent or guardian co-signs an insurance policy, they are effectively taking financial responsibility and vouching for the minor.

The co-signer will be responsible for costs associated with premiums, deductibles, and claims if the adolescent cannot or will not pay. They can also make changes to the policy or cancel it if needed. While getting their own insurance policy may be tempting for a 17-year-old, it is usually more cost-effective to be added to a parent's policy.

The average cost of car insurance for a 17-year-old in the United States is $5,429, which is much higher than the national average of $1,548. In Oregon, the average cost of full coverage car insurance is $1,346 per year, or about $112 per month.

There are ways to save money on car insurance for 17-year-olds. For example, many insurance companies offer good student discounts, safe driver discounts, and low mileage discounts. Additionally, driving an old used car or a car with more safety features can help reduce the cost of insurance. Shopping around and comparing rates from different insurance providers can also help find the best deal.

A 17-year-old is considered a high-risk driver by insurance companies

In the United States, a 17-year-old is considered a high-risk driver by insurance companies. This is due to a combination of factors, including immaturity, inexperience, and higher incidences of accidents and claims.

Immaturity

Immaturity leads to speeding and other risky driving habits. Teenagers tend to overestimate their driving abilities and underestimate the dangers on the road. For example, they are more likely to engage in high-risk behaviours such as distracted and impaired driving, speeding, and not wearing seatbelts. In 2019, 39% of US high school students who drove admitted to texting or emailing while driving at least once in the previous 30 days.

Inexperience

Inexperience means teen drivers often don't recognise or know how to respond to hazards. They are more likely than older drivers to make critical errors that can lead to serious crashes. Crash risk is particularly high during the first months of licensure.

Higher Incidences of Accidents and Claims

The combination of immaturity and inexperience results in a higher number of accidents and insurance claims for teens. The fatal crash rate for 16-17-year-olds is about three times the rate for drivers aged 20 and older per mile driven. Adding a teen driver to a parent or guardian's policy can increase the premium by an average of $3,726 annually.

A 17-year-old cannot own their own car because they are a minor

While there is no minimum legal age for owning a car in Oregon, minors under the age of 18 will find it challenging to purchase and own a car. A 17-year-old cannot own their own car because they are a minor and minors typically cannot own property. In most cases, a parent will have to co-sign on a loan for a car, and while a minor can buy a car, their parent will be the legal owner.

Minors cannot enter into a contract, so while a minor can sign a contract legally, they have the right to void the contract before they reach the age of 18. This means that a minor can void a contract, which makes car dealers and insurance companies wary of doing business with someone younger than 18. Due to contract law, a car dealer selling to a 17-year-old will typically request that a parent or guardian sign the bill of sale and other contractual paperwork, which binds the adult who signed the contract to the contract's terms.

The same is true for car insurance companies. They will request that a parent or guardian sign the policy because they don't want to take the risk that a teen could decide to void their insurance contract. A 17-year-old cannot register a vehicle in their name or obtain automobile insurance on their own. If a teen is old enough to drive, the car should be registered under their parent's name until the teen is old enough to drive it themselves.

While a 17-year-old can buy a car with cash, they will not be able to register their ownership or get an insurance policy without their parent or guardian's help.

A 17-year-old can get premium discounts if they have good grades

In most states, a 17-year-old can obtain their own car insurance policy, but they will need an adult co-signer on the policy until they reach the age of 18. This is because minors are not legally allowed to sign a contract, and an insurance policy is a legally binding contract. A co-signer is taking a risk as they are assuming financial responsibility and there is the potential for financial consequences if the adolescent cannot pay.

Other ways for a 17-year-old to get premium discounts include taking a driver's education course, which can result in savings of up to 10%. Additionally, enrolling in a telematics program, where the insurance company monitors your driving habits through a mobile app or an installed device in the vehicle, can lead to discounts of up to 30%.

It's worth noting that adding a 17-year-old to a family policy is almost always cheaper than obtaining an individual policy.

A 17-year-old can get premium discounts if they have completed a driver's training course

In most states, a 17-year-old can obtain their own car insurance policy separate from their parent's. However, a parent or guardian must co-sign the policy, as minors are not allowed to sign contracts.

Similarly, Safe2Drive offers a Mature Driver Course for insurance discounts, and a Defensive Driving Course for insurance discounts.

There are other ways to save on car insurance for your teen. For example, if your teen is a good student, they may be eligible for a discount. Some insurance companies offer a discount for students who maintain at least a 3.0 or "B" average. Additionally, you can save money by choosing a higher deductible. The higher the deductible, the lower the premium. However, this also means that you will pay more out of pocket if your teen is in an accident.

Another way to save on car insurance for a 17-year-old is to add them to your existing policy. This is usually a cheaper option than getting a separate policy. However, adding a teen driver to your policy will still increase your premium. The average cost to add a teen driver to a parent's policy is $3,726 per year.

It's important to shop around and compare quotes from different insurance companies to find the best rate for your teen's car insurance.

Frequently asked questions