How to Save When Adding a Teenage Driver to Your Auto Insurance

Adding a teenage driver to your auto insurance policy can be expensive. The cost can catch many by surprise. Thankfully, while adding a teen driver is still expensive, the cost is decreasing. For example, in 2013, adding a teenager to a car insurance policy increased rates by 85% on average. That number has since dropped to 78%.

Additional Factors that Influence Rates

The above numbers shift dramatically depending on the gender of the teen driver. Adding a boy increases rates by 89% while a girl only increases rates by 66%. This disparity is due to statistics. In general, young boys have more accidents and file more claims. Rates vary by state as well. Some states increase rates by well over 100% while others do not break into double digits.

How to Decrease the Cost of a Teenage Driver

While the following will not reduce upfront costs, it will hold them steady and prevent them from increasing. The first year on the road poses the greatest threat. Parents should set ground rules and continue to drive with their teenager even after they earn their license. Just because a teenager passed a driving test does not mean they are ready for all situations they will encounter on the road. Other ways to reduce the likelihood of claims are establishing curfews and limiting the number of people in the car.

Parents should also consider investing in technology to help reduce distracted driving. Several apps exist to disable certain aspects of smart phones while an individual is driving. These apps prevent texts and social media updates from pinging the phone while the vehicle is moving.

Some insurance companies offer discounts to individuals who participate in a driver improvement course. Another potential discount exists for students who earn good grades. Parents should ask their insurance agent about any available discounts to help control costs when adding teen drivers to their policy.

Contact The Reilly Company to learn more ways to save when adding a teenage driver to your car insurance policy.

Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInShare on RedditShare on Tumblr

Controlling Your Risk as a Driver

shutterstock_108653897The technology industry has exploded over the last few decades, and with it have come many great safety innovations. Collision avoidance technologies are beginning to gain effectiveness rapidly. The most reliable to date has proven to be front crash prevention. These systems result in fewer crash-related insurance claims, and as such they’re helping to drive down premiums for their owners.

Front crash prevention systems that provide audible and imminent warnings tend to reduce claims by an average of about 7%. Systems that are also able to autonomously apply braking force can significantly improve these numbers with claim reductions averaging around 20%. These features are already needed to achieve top IIHS safety ratings, and will eventually become mandated by law in all vehicles.

Lane-departure warning systems can be effective in notifying drivers of drifting into other vehicles, but can also startle drivers into excessive course corrections. Blind-spot monitoring technology is one of the latest efforts in combating traditional causes of accidents. Watch for these and other collision avoidance systems to make further impacts on the industry in years to come. They’re evolving quickly, and could help you to save significant with your insurance provider. To learn more, contact us.

Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInShare on RedditShare on Tumblr