There are countless car insurances available in the market; however, finding affordable insurance for teens can be challenging. Even though your teen is the safest driver in the world, insurance companies always prefer experienced drivers. This is because teens don’t hold experience in driving and are more likely to get involved in car accidents, as per the reports by the Insurance Information Institute.
Thus, while looking for car insurance for a young driver, ensure to consider various factors, including carriers’ offerings, looking at average premiums, young driver discounts, accident forgiveness policies, etc. Continue reading this article, as it will help you find the least expensive insurance for inexperienced drivers.
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Add Teens to an Adult’s Policy
Finding cheap insurance for teens can be a daunting experience for many people as young drivers pay more than older, more experienced counterparts — about $169 per month on average.
However, one of the best and most affordable ways to secure a teen is by adding them to an adult insurance policy. Since adding an inexperienced young driver to your auto insurance holds its own weightage, your premiums will be lower because of a multi-car discount.
Furthermore, insurance companies offer premiums in those situations where more than one car is on policy due to the reduced administrative cost to issue one policy instead of two.
Following are the points that an insurer looks for while considering teens guardians:
- The teen’s guardians need to be older than 30 years
- The younger driver’s parents need to have a solid credit profile
- The teen’s guardians must have a healthy relationship with the insurer
- The younger driver’s guardians must have a decent driving record
In case the younger driver gets involved in an accident, their parent’s insurance policy will automatically go up. Thus, guardians need to guide their teenagers about safe driving practices along with the consequences associated with reckless driving.
The Most Inexpensive Car Insurance Options for Teens
Today, numerous insurance companies offer the best affordable insurance for inexperienced drivers. Rather than relying on others, one can quickly go online, check the rates, and compare the rates yourself.
Let’s have a look at the most affordable insurance companies for teens:
GEICO
GEICO is one of the renowned car insurance companies in the country. Even though its rates are higher than the national average, it is still considered a cheaper option than its competitors. Besides this, if you have passed out with good grades, the company will offer you attractive discounts.
Furthermore, the company believes in providing driver education and safety programs, and after the successful completion, GEICO even offers discounted rates. Speaking of which, $4211 for a 16 years old driver (for a full coverage insurance policy) $2487 for a 19-year-old (for the full coverage insurance policy).
Progressive
The progressive insurance company is well-known among young drivers due to its smartphone app. The app offers 24*7 prompt support, helps in instant claim filing, and even changes the policy. The company provides special teen discounts for younger drivers (16 and 19 years old).
Furthermore, offer considerable discounts to the students who hold a grade of B or higher. After including such discounts, teenagers get better deals than other companies. Having said that, $5725 for 16-year-old drivers (for a full coverage policy) $3479 for a 19 years old driver (for average coverage insurance).
USAA
USAA offers the lowest car insurance rates, the same for all the states around the country. However, the only downfall people tend to face is limited service to retired military drivers or their family members. It holds a SafePilot program that offers personalized rates for young drivers.
In addition, the company uses telematics to record the driving habits and then create custom pricing for the driver’s policy. Moreover, it ensures a discount for teen drivers who have completed the driver training program. USAA offers full coverage insurance is $2356 for a 16-year-old driver.
Nationwide
Nationwide might not be a famous company, but it has the best policies as it holds some attractive features to support the younger drivers. Students who have passed with good grades get additional discounts like other companies. On the other hand, the company ensures accident forgiveness for the first at-fault drivers. Consequently, if a younger driver gets into an at-fault accident for the first time, then the company will not increase the insurance rates.
Plus, they have the most exceptional SmartRide insurance measure usage-based insurance. This is suitable for those drivers who have safe driving habits; they can save good money. So, you require to pay $5421 for a 16-year-old driver (full coverage) and $3462 for a 19 years old driver (average full coverage).
Conclusion
Adding a teen policy is perhaps a cost-effective method. However, the parents need to be at least 30 years old and have a clean driving record. Also, if the younger driver gets involved in an accident, it will directly affect the parent’s policy. The other option can be USAA, and Nationwide insurance companies as both offer excellent features and tend to be the most cost-effective option. Lastly, before buying a car for a teenager, the parents need to introduce them to safe driving practices and the consequences of reckless driving.
