Oregon Teen Auto Insurance: Occasional Use, Big Savings?

Getting car insurance for a teenager can be expensive. One way to save money is to add your teen to your existing policy. This is usually cheaper than taking out a separate policy for them. If your teen only drives occasionally, you may be able to get an occasional use discount. This is where your teen drives the car less than 25% of the time or puts on less than 25% of the annual mileage. However, if you have more drivers than cars, your teen may be considered a primary driver by some insurers.

Adding a teenager to an existing policy

Adding a teenager to an existing auto insurance policy

Adding a teenage driver to an existing auto insurance policy will raise the premiums as teens are more expensive to insure. New drivers are considered to be among the most dangerous on the road, with a higher rate of accidents and more claims filed compared to the average driver. According to the Centers for Disease Control and Prevention, the risk of motor vehicle crashes is higher among teens aged 16-19 than among any other age group. Per mile driven, teen drivers in this age group are nearly three times as likely as drivers aged 20 or older to be in a fatal crash.

In most cases, it is more affordable to add a licensed or permitted teenage driver to an existing auto insurance policy. The policy's coverages and limits will extend to the teen driver, and some insurers offer discounts to help offset the cost of insuring a new driver. A separate policy for a teenage driver can be expensive because of their lack of driving experience and their higher likelihood of accidents.

The cost of adding a teenager to an auto insurance policy can be very high. Annual premiums can easily double when a newly licensed teenager joins the policy, though the cost varies by state and area within states. Adding a 16-year-old male to a policy will result in an average annual rate of $4,861 per year, and for females, it will be $4,532 annually.

There are a few ways to reduce the cost of adding a teen driver to a policy:

• Requesting a Good Student Discount: Many insurance companies offer discounts to students with good grades, usually defined as a B average or above.
• Enrolling the teen in a defensive driving course: Completing a defensive driving class can lower annual premiums by up to 15%.
• Occasional Operator: If the teenager is a limited user of the car, they may qualify for an occasional driver discount.
• Choosing the right car: If the teen drives a separate car, consider buying an older model that is inexpensive enough to forego collision and comprehensive coverage. Avoid sports cars, which can add significantly to the cost of a policy.

It is important to note that insurance companies in California base their rates on how long the driver has had their license. Since teenagers have very little driving experience, it is difficult to find an affordable auto insurance policy to cover them on their own.

Discounts for good students

While it is not unique to Oregon, many insurance companies offer good student discounts for teenagers and young drivers. These discounts are usually applicable to full-time students under the age of 25 who maintain a certain grade point average, typically a B average or higher. The discount can range from 10% to 25% off the regular insurance premium.

For example, Progressive offers insurance discounts for full-time students under the age of 23 who maintain a B average or higher, or who are under the age of 18. Similarly, Allstate offers discounted car insurance rates for full-time, unmarried students under the age of 25. American Family Insurance provides a "good student" discount for students aged 16 to 25 enrolled in high school or college, with a minimum B average. GEICO gives full-time students in good academic standing a 15% discount on some coverages.

In addition to insurance companies, there are also other businesses that offer discounts for students with good grades. For instance, Farmers Insurance offers a discount for full-time students under the age of 25 with qualifying grades or test scores.

It is important to note that the specific criteria and eligibility requirements for good student discounts may vary depending on the insurance company and your location. It is always a good idea to contact your insurance provider or refer to their website for detailed information about their specific good student discount program.

Discounts for safe drivers

Occasional use auto insurance is a type of insurance for vehicles that are not frequently driven. Even if a car is rarely driven, it must be insured if it is registered. The requirements for insurance vary by state, but generally, insurance is mandatory.

There are ways to save on insurance premiums for cars that are not frequently driven. Cars that are rarely operated can be rated as extra vehicles, as long as there is more than one car in the household. One way to save on premiums is to assign a vehicle that is rarely driven a low-mileage, pleasure usage rating. Some companies offer special usage-based insurance rates, but this requires installing a device in the vehicle to monitor usage.

Drivers can also take advantage of discounts offered by insurance companies. In Oregon, several auto insurance discounts are available that can help reduce your costs. These include discounts based on driver profile and education, billing and payments, customer loyalty, driving history and habits, occupation, and vehicle equipment.

For example, drivers who are teachers or firefighters in Oregon get a 7% savings on car insurance, as insurance companies consider them less risky to insure. In Oregon, you can get a 10% discount if you pay in full, and 3% to 13% for having multi-policy with the same insurer. Based on Carinsurance.com's analysis, Allstate offers the biggest combined discounts in Oregon at 12%.

Another way to get a discount on insurance is by taking a defensive driving course. Defensive driving courses teach safe driving techniques for accident prevention. Adopting defensive driving techniques could help make the roads a safer place. GEICO may be able to offer a discount for taking a course to learn these skills. In Oregon, drivers can get a 4% discount on car insurance rates for completing an approved defensive driving course.

State Farm also offers a Drive Safe & Save app that can help drivers get a discount of up to 30% on their auto insurance. The app collects driving information to calculate the discount.

Lowering coverage

While it is necessary to have car insurance for your teenage driver, there are ways to reduce the cost of coverage. Here are some options for lowering your insurance coverage costs:

Lower your coverage

Removing coverages you no longer need is a simple way to save money on your insurance plan. You can also drop comprehensive and collision coverage if your teen's car is not worth much.

Increase your deductible

Increasing your comprehensive and collision deductible will increase the amount you pay out of pocket for a claim, but it will also lower your rate.

Occasional Driver Discount

If your teen only drives the car occasionally, you may be able to qualify for an occasional driver discount. Inform your insurance company if your child is away at college and only drives the car during vacations.

Good Student Discount

Many insurance companies offer significant discounts for students with good grades. If your teen maintains at least a B average or higher, you may be able to get a discount of up to 15-25%.

Accident-free Discount

If your teen has a clean driving record with no accidents or collisions, you can request an accident-free discount from your insurance provider.

Students Away from Home Discount

If your teen attends school more than 100 miles away from home and doesn't drive the household vehicle regularly, you may be eligible for a discount of up to 30%.

Defensive Driving Course

Enrolling your teen in a defensive driving course can help lower your annual premium by up to 15%.

Shop Around for Insurance

Compare rates and discounts offered by different insurance companies to find the best deal. Some companies may offer more competitive rates or additional discounts that could save you money.

Increasing deductible

Increasing your deductible is one way to lower your insurance premiums in Oregon. The deductible is the amount you pay out-of-pocket when you make a claim. Typically, as the deductible increases, the insurance premium decreases. This means that you can save money on your premium by opting for a higher deductible, but you will have to pay more if you ever need to file a claim.

While increasing your deductible can help lower your insurance costs, it's important to remember that you should choose a deductible amount that you can comfortably afford to pay in the event of a claim. Additionally, consider the frequency of your claims. If you rarely file claims, a higher deductible may be a good option to reduce your overall insurance expenses. However, if you anticipate filing multiple claims, a lower deductible might be more suitable to avoid paying high out-of-pocket costs each time.

It's worth noting that insurance companies in Oregon offer various discounts and ways to save on premiums, such as provider discounts, bundling policies, and taking advantage of low-mileage discounts. Comparing quotes from different providers and exploring available discounts can help you find the best rates and coverage options for your needs.

Frequently asked questions