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How Will A Teen Driver Affect My Car Insurance?

By September 16, 2020December 29th, 2020No Comments

When teens are about to turn 16, chances are they’re dreaming of carefree days behind the wheel with the windows down and the wind in their hair. As the parent of a new teen driver, your dreams may be clouded with worry and higher insurance rates.

Talking with Eve Insurance is the first step in dealing with both topics. Knowing that you have adequate car insurance coverage can offer peace of mind when you hand over the keys to your teenager. Eve Insurance can help design your coverage to protect your family and meet your budget.

When Should I Add My Teen Driver to My Insurance?

With Michigan’s graduated licensing process, most companies require you to add your new driver when they begin Level 2. At this level, they are permitted to drive alone (with specific restrictions) so they are considered household drivers and need to be covered.

Will Adding a Teen Driver Mean Higher Rates?

Adding a new, inexperienced driver will increase your car insurance premium since teen drivers add more risk. Studies prove teen drivers cause more accidents and tend to be easily distracted behind the wheel. As a result, teens are more costly to insure. But while your rates are likely to increase, there are ways to make your car insurance more affordable.

How Can I Save Money?

While the thought of having a new teen driver may send your blood pressure skyward, there are several ways to lower the cost of insuring them.

  • Raise your deductible. It’s an effective way to offset the cost of insuring a teen driver, but be aware that teens have more accidents so you may not want to take on more risk than you can handle.
  • Postpone the license. Many insurance companies use 2-year rate groups, meaning an 18-year-old is less expensive than a 16-year-old. But keep in mind some companies use driver experience and not age to determine the rate. This means that a 21-year old that has just gotten their license would be rated the same as a new teenager.
  • Share the family car. Having your teen drive one of your existing family vehicles may limit their driving time, which reduces your risk in the eyes of the insurance company. If you buy a car just for your teen, that unlimited access may mean more time behind the wheel.
  • Choose a new car wisely. If you need to buy a car for your new driver, you may want to research which ones cost less to insure. We can help.
  • Good grades. Many insurance companies view responsible students as responsible drivers and reward them with lower insurance rates.
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