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Insuring a Teen Driver in Texas – Finding Low Cost Solutions

Getting a teen included in auto insurance policy in Texas is going to jack up the premiums. However, if you shop around and follow a few key steps, you may yet find cheap car insurance for your teen age driver.

When you want to add a teen to your car insurance policy in Texas, finding low cost solutions does get a bit difficult. Teen age drivers are considered high risk, so insurance companies hedge their bets by increasing your rates. Teens are involved in significantly more accidents than older, more mature drivers, which provide insurance companies a justifiable reason to hike the rates for teenage drivers.

The National Highway Traffic Safety Administration reports that drivers under 25 years of age are four times more likely than adults to die in an auto accident. Teens tend to drive fast, talk, text and do whatever they can to pass the time, all of which gets them in trouble. We were all teens once – odds are (like me) you were not the safest teenage driver on the road.

Adding a young / teen age driver to an auto insurance policy may increase your premium by 50-100%. If the vehicle the teen driver is cruising in is new or any type of sports car – the risk goes up and so do the prices.

Here’s is some simple advice to help you manage your household car insurance costs when it is time to get your son or daughter included in your auto insurance policy.

Adding a Teen to Current Policy as an Additional Driver

The first point, it is usually cheaper to add a teen to the current policy as an additional driver, than buying a separate policy for them. When you add them, all the benefits on the current policy also pass on to the additional driver. Assuming you and / or your spouse have a good driving record, you’re probably better off simply adding your son/daughter to your own auto insurance policy and pay the revised premium.

However, if your driving record is not very impressive or you drive expensive cars or fast cars that your child will also drive, getting a separate policy for your teen will likely be less expensive.

Shop Around for Car Insurance in Texas

Insurance providers do differ in premiums when it comes to teen age drivers, so it does make sense to shop around. An insurer who is offering the best rates for you could jack up the rates substantially when it comes adding a teenager to the policy.

Some insurers offer better deals than others for teen drivers, so it’s important to compare costs. An insurance company that offers the best rate for you may have some of the highest rates when you add a teenage boy to the policy. Insurance costs are more or less for 40 year old plus drivers, but when it comes to younger drivers, the rates differ hugely. Be sure to use the zip code box at the top of the article to get multiple free auto insurance quotes. Saving money is the equivalent to making it!

When to Buy Separate Policy for Your Teenage Driver

Be sure to ask your auto insurance company when they consider a teen driver no longer a “teen”, but an adult. When your teen reaches that “adult” age apply for a decrease in premiums. If your teen has his or her own car, buy them their own insurance policy when he turns 18 (or whatever age the insurance company suggests). As your teen gets older and establishes a safe driving record, premiums eventually go down.

Taking a Teen Defensive Driving Course

Make sure that your teenager takes a defensive driving course. It won’t just save his or her life, but will also make others on the road safe. Moreover, it will bring down insurance premiums.

A single speeding ticket your teenager receives may hike the rates considerably. In fact, they may go up in the range of 100-150%.

Good Grades Help Reduce Teenage Auto Insurance Rates

Your teen’s performance in high school or college is taken into account by the insurer when it comes to auto insurance rates. When a teen or young adult gets good grades in the classes, they come across as responsible people and it may positively affect the premiums. Some schools also offer safe driving classes. You may inquire with your teen’s high school or college if they offer such a course.

Your Choice of Car Impacts Premiums

As any expert will advise you, the type of car your teen drives has a direct impact on the insurance rates. If your teen drives a small, budget oriented car, you’ll have to pay less in premiums compared to when your teen is driving an expensive car.

SUVs or sports cars are more prone to rollovers and high speeds, so you’ll need to shell out more for insurance. It might be a tough sell, but a stodgy, used car is also less likely to be stolen and will probably perform better in a crash test than a newer fancy/fast one. Stodgy means lower premiums.

If you own several cars, you may ask your insurer to assign your teen one specific car. In other words, you will tell the insurer that the teen will drive only a particular car, which will typically be the less expensive one. However, you must remember that many insurers won’t assign cars that way. They will assume that any member of the house can drive any of the vehicles.

Auto Insurance Liability limits

The question of just liability insurance versus full coverage is something you are going to put a lot of thought into. If you have only liability auto insurance for your teen, eliminating comprehensive and collision coverage, it will bring down the premiums considerably. However, there is other side of the coin. If your teen is involved in an accident, you will be financially liable for the cost to the other party. An alternative option is for you to get an umbrella liability insurance policy.

In short, research well and shop around for the lowest car insurance in Texas for your teen driver, before you make a final a decision.

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The writer is an expert on Texas car insurance. He is currently associated with In Texas Auto Insurance, which is a platform for getting all insurance related information.

Enter Your Zip Code To Compare Texas Auto Insurance Rates
From The Top 8 Insurance Companies
You Could Save $570 In Less Than 10 Minutes.

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Texas Car Insurance for Teens: Cheap

When you add a teenage diver to our Texas car insurance policy, the premiums can almost double. However, there are ways to get reduce the premiums. Find out why Texas teenage insurance is so costly and what you can do save money.

What the impact is of adding a teenage driver to your Texas car insurance policy is one of the most asked questions by parents. Usually adding a teenage driver to your policy can double the costs, but not always. No two families are alike and various factors come into play.

The good news is that teen drivers in Texas do have ways to keep the costs of insurance down. They can do that by obeying the rules of the road and using good judgment when behind the wheel on the road.

Texas Car Insurance Minimum Requirements

Texas car insurance minimum requirements include only bodily injury and property damage liability coverage. All drivers are required to carry at least $25,000 property damage liability to cover the damages they may cause to the property of another person. For all people injured in a single accident, it should cover up to $500,000. Adding a teenage driver in Texas would include additional collision and comprehensive coverage and will affect the premiums in costly way.

Texas Teenage Insurance: Costly Mistakes

For a teen in Texas without tickets, the average cost of liability coverage can be expected to be around $510 every 6 months. However, getting a single speeding ticket could increase the rates to over $1,300.

A single accident involving the car, without any other tickets, would increase your teen’s insurance rates around $1,400 for half a year. If your teenage driver is in one accident and gets one speeding ticket, the average cost of insurance will jump to nearly $1,600 for 6 months.

Bringing the Cost of Teen Car Insurance Down

Your teenage driver can be eligible for student insurance discounts by maintaining a 3.0 grade average or better. If they take a voluntary driver safety course, they will get another discount which is available to all drivers, including teenage drivers. You can also increase the deductible, the amount you have to pay before the insurance carrier will fix your car, to lower premiums.
Teen drivers tend to easily get distracted by other drivers and the excitement of driving a vehicle on road on their own. If they keep themselves in check, they will be able to keep tickets or accidents at bay.

Multiple Ways to Save on Teenage Car Insurance Costs

The type of cars can control costs: Having your teen drive a Camry, rather than a Mercedes; and encouraging them to keep their driving records clean can reduce rates in a major way. To make it easier on your wallet, put your teen in a big, sturdy vehicle rather than a zippy, small car.

Good grades and teen insurance: You must encourage your teen driver to do well in classes. If they get good grades, including the driver education course, it will positively affect insurance premiums.

Liability insurance only: If the car your teen will drives is old enough to get by with only liability insurance, your rates will come down substantially. It would eliminate the cost of comprehensive and collision coverage. However, many insurance companies use a technique called ‘driver averaging’. It is the practice of rating all drivers across all vehicles, resulting in higher premiums.

Separate car insurance policies: Always more costly: It will be better for your finances to have your teen driver on your car insurance policy, than paying premiums for a separate car insurance policy. If you have purchased your teen a new car, you can get discounted rates by the additional vehicle being added to your own insurance policy.

Avoiding Teen Car Premiums Completely: A “Named Exclusion” is the only way you can avoid paying the insurance premium for a teen. The endorsement denotes you and the insurance carrier agree that the driver is not covered.

Graduated Driver Program in Texas

The state has put in place a graduated driver program that gradually promotes new drivers into full control of the vehicle. They are initially issued a learner’s permits. When driving a car under this permit, they must be accompanied by a fully insured and licensed driver. This enables them learn the skills of driving safely. When they get matured as a driver and pass the test, they are granted the full license. Parents need to take safe driving as seriously as possible to keep their teenage drivers and others safe on the road.

Why Teen Insurance is More Costly?

Teenage drivers tend to drive dangerously, getting tickets and racking up accidents at rates much more than a typical driver. Simply put, they are a greater financial risk to the insurance company, therefore their rates are higher. You may have the safest, most conservative teenage driver in the world, but without good grades and a driver safety course – the initial premium rates will still be high because of the “calculated risk” the insurance company takes by insuring a teen driver.

Inclusion of Teen in a Policy

All insurance carriers in Texas will require that all licensed family members in a household be listed on a policy. It implies that whether they drive the car or not, you need to get them covered under the policy. When they get the learner’s permit, you should let the insurer know. A teen won’t be listed and incur insurance expenses until they get a license.

In the event you are divorced and have only part-time custody of the teen, you need to consult the Texas car insurance provider you work with. Companies have their own rules regarding such insurance. Usually, the parent with primary custody adds the new driver under their policy.

Resource Box

The writer is an expert on Texas car insurance. He is currently associated with In Texas Auto Insurance, which is a platform for getting all insurance related information.