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.
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.