We’ve all heard the funny quips and jokes about new teen drivers being on the roads when they first get their licenses. For your son or daughter, it’s a liberating time full of the freedom they’ve wanted. But, it can be a mix of excitement and terror for you. At TGS Insurance, we want to make parents feel at ease about their kids getting on the open roads by providing them with the best auto insurance rates. We’ve put together a guide for parents to help you navigate what you need to know about adding a teen driver to insurance.
If Your Teen Has a Learner’s Permit, They Do Not Need an Auto Insurance Policy
Let your insurance company know your teenager has obtained a learner’s permit. They do not require auto insurance for teenage drivers until they get fully licensed. However, we highly recommend working with your insurance agent to understand better what coverage you have should your teen get into an accident and discuss if it’s needed to obtain some sort of protection for your new driver.
Teen Males are Rated Differently than Teen Females
Car insurance for teens, regardless of gender, is more expensive than for any other age group. Still, teen males are rated higher than females because they’re more likely to be in an accident statistically. Males, in general, tend to pay more for auto insurance as a whole, regardless of age, because they are more likely to:
- Have more accidents
- Drive recklessly
- Not wear a seatbelt
- Get a moving violation
The Cost of Adding A Teen Driver to Insurance: You Will See Your Auto Insurance Premium Go Up
Depending on your route, you could see your premium go up a few hundred dollars per year if you add your teen to your policy or a few thousand if you opt for a new policy entirely for your new driver. If you’ve got a good policy, there are a lot of benefits to adding your teen to your existing policy, but you’ll need to weigh out the pros and cons with your insurance agent to decide which route is best for you. For example, if your teen gets a speeding ticket, you will see a rise in your policy premium.
Here’s a breakdown of the average auto insurance policy premium based on age and gender for full coverage:
Average Full Coverage Insurance Policy Premiums by Age and Gender
| Age/Gender | ||||
|---|---|---|---|---|
| 16-year-old male | ||||
| 16-year-old female | ||||
| 17-year-old male | ||||
| 17-year-old female | ||||
| 18-year-old male | ||||
| 18-year-old female | ||||
| 19-year-old male | ||||
| 19-year-old female |
Source: CarInsurance
The best thing to do is speak with your insurance agent about the route best for you and your teen driver. In addition, if you just want to purchase a policy that meets the state’s minimum requirements, then you will see your rate dramatically decrease compared to a full coverage policy. It’s important to remember that if your teen is in a car accident, then your assets, as the parent, are at risk in the event of a liability claim. If you’ve got a lot to lose in the event of a liability suit, something to consider purchasing in addition to a full coverage auto insurance policy is an umbrella policy. An umbrella policy is extra financial protection that goes beyond the limits of other policies, such as home, auto, or watercraft.
Some Cars Are More Expensive to Insure for Teen Drivers Than Others
Whatever car your child drives, you want to be safe and affordable. Consider insurance costs. Some cars mean higher insurance premiums for teens because carriers weigh the risk. Let’s review an analysis done by ValuePenguin that breaks down the top 20 cheapest and top 10 most expensive cars to insure for teens.
20 Least Expensive Cars to Insure for Teens
10 Most Expensive Cars to Insure for Teens
It’s important to remember that these are just estimates, and your rate may vary depending on where you live and other insurance carrier rating factors.
If you’re weighing the decision to buy old or new, know that both have pros and cons. Older cars tend to be less expensive to insure because the insurance carriers deem them less valuable (compared to a newer car), so the carrier won’t have to pay out as much in the event of a loss. In addition, once the vehicle falls below a particular value, collision and comprehensive coverages may cost more than the car is worth. On the flip side, newer cars are more expensive to insure because they’re more costly to replace or repair, BUT some insurance carriers will provide discounts for driving newer vehicles. This is because they’re equipped with better safety features, anti-theft devices, and other things older cars just don’t have or are outdated.
TGSI Tip: If you or your teen are car shopping and have narrowed your search to a few choices, have your insurance agent run quotes for how much it will be to insure each car on the list. This will give you a better and more informed estimate of how much the monthly car insurance bill will be before something is purchased!
Always Compare Quotes From Various Carriers
One of the best ways to save on auto insurance when adding a teen driver or purchasing their policy is to shop the policy around with different carriers. It’s a good rule of thumb to shop your auto policy with 5-10 carriers every six months (around renewal time) because things can change, such as your family’s driving frequency, new cars, your rate fluctuates, you moved- several things. It’s imperative that if a teen is on your policy, you’re shopping your insurance rates around frequently because teen drivers have a significant impact on your auto insurance premium. Below is an analysis done by NerdWallet that shows the top five most expensive and least expensive car insurance carriers by gender and coverage type.
Full Coverage Rates by Gender from Top 5 Largest U.S. Auto Insurance Carriers
Minimum Coverage Rates by Gender from Top 5 Largest U.S. Auto Insurance Carriers
We understand that the idea of shopping and comparing rates is a time-consuming, tedious, and downright stressful experience. We know because we’ve heard it from parents time and time again. At TGS Insurance, we do all the heavy lifting for you. Your TGSI agent will recommend an auto insurance policy that’s best for you and your teen driver and has both the coverage you want and needs at a price that doesn’t break the bank. How do we do this? We compare and shop your policy across our suite of 30+ A-rated (or better) auto insurance carriers to ensure you’re getting a balanced coverage and price policy. What’s even better? We’ll do this every renewal period, so you don’t have to! And we don’t just stop at an excellent policy. We will handle everything from start to finish, from setting up a payment to working with your previous carrier to process cancelations for an easy, stress-free process. Getting auto insurance has never been easier!
There Are Discounts and Savings Available for Parents with Teen Drivers
Fear not, parents. You can save on your auto insurance policy with teen drivers! Some of the most popular savings are:
- Defensive driving discount: If your teen takes a defensive driving course, your car insurance carrier may offer a discount. Be sure to ask about other safety courses your teen driver could take that could help lower your rate.
- Good grade discount: Is your teen a good student? Some auto insurance carriers will offer discounts for students who maintain a certain GPA.
- Student away-at-school discount: If your teen is away at college or goes to school far from home, ask your insurance agent about the student-away discount.
- Bundle with your home policy: Bundling your home and auto insurance can offer savings of as much as 20%! Talk to your TGS Insurance agent about what bundling options you have available to save the most.
- Automatic bill payment: You may be entitled to discounts if you opt-in for automatic bill payment or even electronic document delivery. Sometimes it saves to go auto and digital!
- Clean driving record: If your teen maintains a clean driving record, you could see great discounts from your carrier. Insurance companies see teens as inexperienced and high-risk drivers, so a good driving record could help shed some dollars off your premium.
- Safety features: A car jam-packed with safety features could help give you a discount, depending on the vehicle. Things like anti-theft devices, lane departure warnings, anti-lock brakes (ABS), and other features can help.
Each carrier is different, and each has its discounts available for teen drivers. Be sure to ask your insurance agent about what’s available to you!
Insure Your Teen Driver with TGS Insurance Agency
Insuring a teen driver can be expensive, but you can still protect yourself (and your teen) by doing some upfront research to help alleviate some expenses. At TGS Insurance, your agent will search for every discount available and provide you with an auto insurance policy that best suits what you and your teen need to stay financially protected. Get started today with your hassle-free quote and see why over 4,700 Texas drivers are insured through TGS Insurance!