The Truth Behind Teen Auto Insurance

The Truth Behind Teen Auto Insurance I DRIVE SAFELY Adding a Teen Will Cost You Rate Hikes Hit Hard 62% increase 58% increase 44% increase The cost of adding a teen to your policy increases according to the number of cars in the household. $2,912 1Year Premium Cost For a two-car household, the average annual premium cost for parents plus a teen (from 16-19) is $2,912. 100 % 50 % Adding a teenage daughter to a family policy can up the parents' rate by 50%, while adding a teen boy can increase it by 100%. 132% 94% 105% 170% 164% 181% 232% 2129 KS AZ 175% LA 243% 199% 126%6 139% 130% 127% The same married couple could see a 94% increase in their insurance for adding a teenage boy to their policy in Michigan, whereas the same addition in California could mean a 232% increase. $3,500 25% The insurance rate of a 16-year-old who causes a rear-end collision resulting in $3,500 worth of damage will go up an average of 25%, and could even double. Ten Money-Saving Tips Things You Can Do to Lower Your Rate Drive safely No, really. As obvious as that may sound, being a safe driver saves you money in two ways: For one, you won't have higher premiums caused by an accident or traffic tickets. And two, most auto insurance carriers offer a Safe Driver discount, which gener- ally shaves around 25% off of your Make sure your kids study regular ratel Many insurance companies offer Good Student discounts Go for modesty to reward students that earn high grades and are therefore more likely to be responsible behind the wheel. Sure, sports cars and luxury cars may have all the power and speed..but they also have al the power and speed. This is not necessarily what you want for an inexperienced driver, so if your teen is getting their own car, keep in mind that Pay all at once the cheaper, more reliable cars will cost you less when it comes to insurance. Many insurers will charge you less if you pay for the entire ye ahead of time, rather than spreading out the payments. If you've got the money to do so, go Drive less for it! It's one less bill to worry about each month, and it's easier Reducing the amount of miles you drive each day can poten- tially get you a discount, as the number of miles you drive on your wallet. factors into your insurance rate. Give your provider a call if you end up with a significant decrease in your daily mileage and find out if you qualify for a lower premium. Things You Can Do to Raise Your Rate Let your credit go Paying your insurance bills late will really help with this. Allow your credit to plummet, and you'll be sure to see higher Insurance rates. Don't qualify for discounts Constantly change providers Avoid discounts like the plague, and youl easily be paying more than you should each month. Switching insurance companies frequently will ensure that you never earn a customer loyalty discount, which will increase the amount you end up paying each year. Have a teen with poor grades Get more coverage than you need Low grades in school typically reflect irresponsibility, and insurance companies will view There is such a thing as paying for these teens as a higher risk more car insurance than you really when it comes to insuring them. need. If you have a car with little to no value, you don't need to pay as much as someone covering a brand new luxury vehicle. More Ways to Save 3 Top Insurance Companies & Their Discounts $. We selected three major insurance providers. Here are the discounts they list on their websites. Check with your carrier to find out if there are other available discounts. Geico Allstate StateFarm Air Bag Safe Drivers Good Student Anti-Lock Brake System Early Signing Multiple Automobile Anti-Theft System Good Student Multiple Line Daytime Running Lights Passive Restraint Good Driving Anti-Lock Brakes Five-Year Accident-Free Good Driver Steer Clear Safe Driver Anti-Theft Devices Defensive Driving Course, Drive Safe & Save Seat Belt Use Multiple Policies, Auto/Life Discount Defensive Driving Driver's Education New Car Good Student Deductible Rewards Emergency Deployment Military Resident Student 55 & Retired Partnering Organization Federal Employee (Eagle Discount) Multi-Car, Multi-Policy/Multi-Line Discount Enjoyed this Infographic? Please feel free to share SOURCES: http://money.man.com/auto-insurance/best-auto-insurance-companies hetp://www.statefarm.com/insurance/auto insurance/discounts/auto-discountsasp http://www.alktate.com/auto-insurance/auto-insurance-discounts.aspe I DRIVE SAFELY hetp://www.geico.com/information/discounts/car-insurance-discounts http://www.mint.com/blog/how ta/10 things-that you can do-to-lower your auto-insurance premium http://www.insurance.com/auto-insurance'saving-money/adding-a-teen-to-my-car-insurance-policy-costs-how-much aspx hetp//moneyman.com/auto-insurance/article.aspxipost-aflaafof Mc1-4d16-aa63-c78584d57af8 http://editorial.autos man.com/larticle.aspxlep-documentid=434671 www.idrivesafely.com