Your Teen Is Driving. Here’s How to Lower Your Rates

The statistics are startling: Teen drivers are three times more likely to die in an auto accident than are those aged 25 to 64.

So it should come as no surprise when insurance companies raise your rates by 50% to 200% when your teen starts to drive. Fortunately there are ways to lower your rates, despite your teen driver.

Statistically, the longer your teen waits to drive, the less chance he or she will crash. Sixteen-year-old drivers crash three times more frequently than do 19 year olds. If your teen is not sufficiently mature, make him wait until he is.

A driver’s education course offers a lot of pluses for your teen and can reduce your rates by as much as 15%. Some insurance companies also offer good-student discounts.

Limit nighttime driving, as more than 40% of teen-involved fatalities occur between 9 pm and 6 am. Also note that distracted driving is now an epidemic in the U.S.; don’t allow calling or texting while driving. No passengers either; research indicates that the risk of driving fatalities increases with the number of passengers.

Once your teen turns 18, consider a separate insurance policy. If you decide to purchase a used car for your teen, be aware that older-model cars, while cheaper to insure, may have fewer safety features such as side-impact air bags.

Don’t forget, for your teen this is a rite of passage on the way to adulthood. Of course it’s important to keep your premiums low, but it’s more important to produce a good, safe driver.