Know more on car insurance for teens

August 28, 2020

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RHI Agency Team

Picking a car for your teenager? Know more on car insurance for teens

Having kids approaching the age to have a license is both comforting as well as terrifying at the same time for their parents. The risk is very high when your teenage son or daughter is driving as the safety of your child, the safety of the vehicle, and the safety of the surrounding people and property are taken into consideration. So, there is a very high need for insurance for teens.

The laws concerning insurance for teens can be different depending on the insurance agency and the state you live in, hence you must notify the insurance agency as soon as your kid obtains a learner’s license.

RH insurance agency will educate you on the options you have and help you make the best decisions for your kids. They have about 20 insurance companies under there roof, which will avoid the headache of comparing quotes.

Why is there a high need for insurance for teens?

Teenage is the best as well as troubled age anyone can go through. The teens are full of energy and are easily distracted by even small things. Inexperienced and easily distractible drivers pose a high threat on the road to people’s life and property.

According to IIHS, the crash rate for 16 to 19 years per mile is about 3 times the rate for drivers of age 20 and above, in the US. The risk is the highest between 16 to 17 years.

About 1 in 5 teens who drive on the road are likely to meet in an accident in the first year of driving. Auto accidents are one of the biggest causes of deaths of teens of 15 to 20 years, so make sure that your children understand the risks and responsibility before you hand over your keys to them.

Insurance and the type of vehicle

The type of car your teenage son or daughter drives will have an impact on the insurance policy. According to insurance experts, cars that rank better in safety tests, like minivans and sedans can cut the insurance cost down and offer better safety to the teens.

Safety, size, reliability, and price are the most important things you must check before choosing a car for a teen.

Every year the Highway Loss Data Institute and Insurance Institute for Highway Safety team up together to identify the safest cars in the country. A series of crash tests are conducted and the cars that provide better safety to the driver and passengers are picked out. You can have a look at their list before deciding on a car.

Insurance for Teenagers

For every parent, there is nothing important than their kids. Their safety and future are of the topmost priority. Insuring your teens can help you give a little comfort and peace of mind, and is a way of putting some cash, back in your wallet.

A parent can either add his teen child to his insurance or take a new one for him. But the latter is very costly compared to adding your child. In some states, you can save more than $5,000 annually by adding your child to your plan. Even in states like Hawaii which have a small difference, you will be able to save about $1,200 annually, if you are not going for a separate policy.

A separate policy for teen

Insurance agencies sell directly to teens and separate insurance can be bought for your son or daughter. However, there might be some changes in the law regarding the ability of a teen to sign for insurance, depending on the state you live in. In such a case, a parent will have to co-sign the insurance policy.

Also having a separate policy for a teen is way more costly, but has the benefit of getting a higher premium. There are some cases in which a separate insurance plan will be better for the teen:

  • If you own a luxury sports car, then on a single plan all the drivers including your teenage son or daughter will be insured against all cars.
  • If the teen is practical and is eager to independent financially.

Before deciding upon the type of insurance plan you wish to buy it is better you have a good long talk with your insurance agent and know about the benefits and drawbacks of each plan they offer.

Discounts offered to teens on insurance

There are many discounts offered to teens on car insurance and these offers may vary depending on the insurance agency. The insurance agents might not educate you on these discounts unless asked in particular by you. Let’s have a quick walk through some of the common discounts

Good student discount: As the name indicates the grade you score in your school will save you some money if it is good enough. Usually, students scoring B average or above are entitled to this discount and the age limit is usually 25 years.

Note: the notes may vary depending on the insurance agency, the type of plan, and the cost of the plan.

Good driver discount: Having a clean record of driving can make you eligible for discounts. In this case, there must be no black marks in the form of accidents or violations

Defensive driving discount: In this case, you will get discounts of 10 to 15 percent if you take a defensive driving course or extra driving classes than recommended by the state.

Conclusion

A teenager driving a car is something every parent worries about. But since driving is an art that can be improved only by practice, the only thing you can do is to ensure that they drive a safe vehicle and buy a proper insurance policy. The insurance plans will differ depending on the agency you approach and the state you live in. make sure that you know about all the benefits and discounts of every plan before buying. We hope you and your kids have a safe and comfortable life.

 

 

 

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