Auto Insurance for the Student Driver

Are you shocked by car insurance rates for the young drivers in your family? Get some help by understanding how insurers set rates, and what you can do to get a discount on student drivers.

Why is Student Driver Car Insurance So High?

I know many parents who were shocked by the rate increase when they placed a teenager on their car insurance policy. The parents had a long driving history without many accidents or claims, and they enjoyed low car insurance rates. But when they added their son or daughter to the policy, the rates doubled or tripled.

• Young drivers, as a group, are considered high risk by insurance companies.
• Young drivers do not have their own driving history to offset a high risk assessment.
• Insurers consider young drivers, especially teenagers, to be reckless and inexperienced. Boys, in particular, are considered to be more reckless drivers than girls are.
• According to statistics, younger drivers are more likely to be involved in accidents which cause claims.

Insurance Discounts For Student Drivers

However, you can take advantage of some car insurance discounts that will lower your young driver’s premium. Driving history is an important factor when insurers calculate a premium, but it is not the only factor. You need to look at discounts that insurers offer for some things you already do, and also look at discounts for simple things you could do without much effort.

• Good student discounts can lower a rate by 15% for young drivers who have a B average.
• Multiple policy discounts can save another 15 – 30 percent. If your family has more than one vehicle, or a home to insure, consider combining all of your business with the same company.

Should Junior Drive The New Car?

One insurance agent gave me a tip when I asked about putting my own teenager on my car insurance policy. I drove a fairly late model car that needed full coverage. The agent suggested buying an older car for my son, one that would only require liability insurance, and then keeping the newer car for myself. The lower premiums on the insurance for the older car would make up for the price of the car in a short time.

Of course, we would have to be extra careful because if he would have been involved in an accident where he was at fault, we would not have insurance to fix or replace the older car. That was certainly an extra incentive to drive safely. If my son would cause an accident that required the second car to be fixed or replaced, that would probably not happen until he could earn the money to do it!

Some Cars are Cheaper to Insure!

On the other hand, sometimes a newer car is actually cheaper to insure than older cars. This is because newer cars come with safety features and anti-theft devices, and those may earn car insurance discounts. So you may choose to upgrade your older vehicle for a newer car in order to have a safer car, and also to save money on car insurance premiums. If buying a newer car is not in your plans, you may look into adding safety features and anti-theft devices. I have seen 10% - 30% discounts for various features, so the cheaper car insurance premiums pay for the upgrades in a very short time.

Now remember that these discounts are cumulative. That means you can earn the 15% good driver discount and a 30% discount for safety features. So, a $150 premium can be reduced to $82.50 with a big of car insurance discount shopping! Make sure you get a car insurance quote from a few of the top companies in your area. Our online car insurance quote forms make it simple to compare auto insurance.

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