Do you remember the excitement you had in getting your license and taking the car out for your first outing? Maybe that excitement began months prior when you received the learner’s permit and only grew until the time came for the driving test, only to have nerves replace that excitement. There are thoughts of “what-ifs” and hopes that the parents will let the teen drive when they want. Rarely does the new driver think about insurance, unless the parent has brought it up. They are too wrapped up in the possibilities of being on the road on their own instead of concentrating on how much their insurance is going to cost.
Figuring out how much it will cost to insure the 16 year old should be a shared responsibility between the teen and the parent. They need to work together to find the best prices and make sure the teen has an understanding of the value of car insurance. By learning what determines the price of their policy together, there is a better chance they will end up paying the least amount possible for the policy.
What Is The Cost?
The cost of insuring a 16 year old heavily depends on a few factors, including their risk category, the vehicle they are driving, and how often they drive.
A 16 year old driver is instantly placed into the “high risk” category, whereas the parent has had time to show what kind of driver they are. Over time the risk category of the 16 year old can change, as long as they prove to the insurer that they aren’t a high risk driver. The reason they are instantly placed into the high risk category is because statistically, new, young, 16 year old drivers are commonly involved in traffic incidents. The insurer instantly assumes they will need to pay for a claim involving the new driver, and because of that they charge the new driver high rates.
Parents and teen drivers should discuss ways they can get themselves out of the high risk category. They should talk about how accidents and traffic tickets affect their insurance rates, and how avoiding them altogether will keep rates low. The best way to avoid accidents includes eliminating distractions in the vehicle. Rules can be made involving no teen passengers in the car, no talking on a cell phone while driving, and the decibel level of the radio to help lessen or eliminate the 16 year old driver becoming distracted. One way to avoid traffic tickets would be to reinforce the driving laws and making sure there are no distractions that would keep the teen from noticing traffic light changes, stop/yield signs, or speed limit changes. Focusing on the road and surroundings are a very important part of driving, and ignoring them or becoming complacent behind the wheel will eventually lead to accidental situations, which become expensive on a 16 year old’s insurance policy. With some insurers, a teen who has three years of perfect driving – meaning no tickets or accidents – they can become eligible for the good driver discount.
The type of vehicle that is driven by the teen will affect their rates. A teen driving a modest car will pay less than a teen who is driving a brand new car that is of the sports car or even the SUV variety. These are usually driven faster or are more expensive to repair. Also, they statistically are involved in more accidents than other vehicles. If there is a choice in the matter, perhaps the teen or parent should contact the insurer to see which vehicles would cost less to insure. One additional note is a teen will pay less for their insurance if they are listed as a secondary driver of a vehicle, not the primary driver.
The number of miles the teen driver puts on the vehicle will play a role in their rates because more time spent driving, the greater the chance of being involved in an accident or other traffic incident. This suggestion seems to conflict with the idea of trying to give the teen more time on the road to gain experience, so we’ll explain it further. Maybe the teen should only be allowed to drive back and forth to school and work, or they could only be permitted to drive while the sun was up since it’s harder to drive at night. Give the teen quality driving time instead of quantity to help keep the miles low.
More Ways To Keep Costs Low
Discounts are another way to help lower the cost of the 16 year old’s insurance premium. One discount mentioned earlier is the good driver discount, which won’t be applicable until the driver is usually 19 years old and has driven with an unspotted record for 3 years. This one won’t be available to a 16 year old, but it is a good goal to have. A discount that could apply right now is the good student discount. Each insurer may have a different qualifying grade point average that the student must meet each marking period, but if the student makes that GPA and can send in a copy of their report card, they are eligible to save on their insurance. Insurers believe that a student who demonstrates their ability to perform well in stressful school situations, like taking tests, will also perform well in stressful situations on the road.
Another discount that might help the 16 year old learn more about driving is taking a defensive driving course (or other offered driving course) from the insurer. When drivers take and pass this class they are eligible for a discount in their premiums because they have made an effort to show they are responsible and safe when driving.
Earlier we discussed the benefits of the teen driving a certain vehicle. If the vehicle has certain safety features the insurer will give discounts. These safety features include items that will help the driver and passengers be safer while driving, or features that will help prevent theft of the vehicle. Some of these can include airbags, anti-lock breaks, or alarm systems.
As you’ve read, there isn’t one price for a 16 year old driver for their auto insurance. The final price depends on their ability to drive safely, the vehicle they are driving, and the coverage they have. To find car insurance rates for 16 year olds, begin with our quote comparison tool that will show you a list of rates from local companies. You can compare prices to see who is offering the lowest rate to your teen driver.
Figuring out how much it will cost to insure the 16 year old should be a shared responsibility between the teen and the parent. They need to work together to find the best prices and make sure the teen has an understanding of the value of car insurance. By learning what determines the price of their policy together, there is a better chance they will end up paying the least amount possible for the policy.
What Is The Cost?
The cost of insuring a 16 year old heavily depends on a few factors, including their risk category, the vehicle they are driving, and how often they drive.
A 16 year old driver is instantly placed into the “high risk” category, whereas the parent has had time to show what kind of driver they are. Over time the risk category of the 16 year old can change, as long as they prove to the insurer that they aren’t a high risk driver. The reason they are instantly placed into the high risk category is because statistically, new, young, 16 year old drivers are commonly involved in traffic incidents. The insurer instantly assumes they will need to pay for a claim involving the new driver, and because of that they charge the new driver high rates.
Parents and teen drivers should discuss ways they can get themselves out of the high risk category. They should talk about how accidents and traffic tickets affect their insurance rates, and how avoiding them altogether will keep rates low. The best way to avoid accidents includes eliminating distractions in the vehicle. Rules can be made involving no teen passengers in the car, no talking on a cell phone while driving, and the decibel level of the radio to help lessen or eliminate the 16 year old driver becoming distracted. One way to avoid traffic tickets would be to reinforce the driving laws and making sure there are no distractions that would keep the teen from noticing traffic light changes, stop/yield signs, or speed limit changes. Focusing on the road and surroundings are a very important part of driving, and ignoring them or becoming complacent behind the wheel will eventually lead to accidental situations, which become expensive on a 16 year old’s insurance policy. With some insurers, a teen who has three years of perfect driving – meaning no tickets or accidents – they can become eligible for the good driver discount.
The type of vehicle that is driven by the teen will affect their rates. A teen driving a modest car will pay less than a teen who is driving a brand new car that is of the sports car or even the SUV variety. These are usually driven faster or are more expensive to repair. Also, they statistically are involved in more accidents than other vehicles. If there is a choice in the matter, perhaps the teen or parent should contact the insurer to see which vehicles would cost less to insure. One additional note is a teen will pay less for their insurance if they are listed as a secondary driver of a vehicle, not the primary driver.
The number of miles the teen driver puts on the vehicle will play a role in their rates because more time spent driving, the greater the chance of being involved in an accident or other traffic incident. This suggestion seems to conflict with the idea of trying to give the teen more time on the road to gain experience, so we’ll explain it further. Maybe the teen should only be allowed to drive back and forth to school and work, or they could only be permitted to drive while the sun was up since it’s harder to drive at night. Give the teen quality driving time instead of quantity to help keep the miles low.
More Ways To Keep Costs Low
Discounts are another way to help lower the cost of the 16 year old’s insurance premium. One discount mentioned earlier is the good driver discount, which won’t be applicable until the driver is usually 19 years old and has driven with an unspotted record for 3 years. This one won’t be available to a 16 year old, but it is a good goal to have. A discount that could apply right now is the good student discount. Each insurer may have a different qualifying grade point average that the student must meet each marking period, but if the student makes that GPA and can send in a copy of their report card, they are eligible to save on their insurance. Insurers believe that a student who demonstrates their ability to perform well in stressful school situations, like taking tests, will also perform well in stressful situations on the road.
Another discount that might help the 16 year old learn more about driving is taking a defensive driving course (or other offered driving course) from the insurer. When drivers take and pass this class they are eligible for a discount in their premiums because they have made an effort to show they are responsible and safe when driving.
Earlier we discussed the benefits of the teen driving a certain vehicle. If the vehicle has certain safety features the insurer will give discounts. These safety features include items that will help the driver and passengers be safer while driving, or features that will help prevent theft of the vehicle. Some of these can include airbags, anti-lock breaks, or alarm systems.
As you’ve read, there isn’t one price for a 16 year old driver for their auto insurance. The final price depends on their ability to drive safely, the vehicle they are driving, and the coverage they have. To find car insurance rates for 16 year olds, begin with our quote comparison tool that will show you a list of rates from local companies. You can compare prices to see who is offering the lowest rate to your teen driver.
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