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.
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.