Insuring Your 16 Old
Have you frantically googled how much car insurance is for a 16-year-old and panicked after finding out that it is quite heavy on the pocketbook?
So, your newly turned 16-year-old is now licensed to drive what happens next? Insurance, of course! Since 16-year old drivers have less experience behind the wheel than older drivers, they pose more of a risk and in turn pay a higher insurance premium. Apart from age, gender also plays a crucial part in determining the insurance premium. Statistics show a 16-year-old male driver is more likely to receive a citation or get into an accident than a 16-year-old female. Male teenagers pay an average of 16% more for their insurance premiums than their female counterparts.
Why are teen car insurance rates higher?
The insurance company has a standard protocol and working mechanism that calculates the rates based on future risks. Assume that we are computing the insurance premium amount. Then one has to consider the insured’s driving experience. Evaluating the background to infer results is essential. Consequently, information like location, where they drive, how far they drive to work or school, the type of vehicle, and their claim history must be recorded.
According to the National Highway Traffic Safety Administration (NHTSA), in 2016, one out of five teen drivers involved in a fatal crash had alcohol in their system. The following stats put the 16-year-old at a disadvantage because their recklessness and limited experience combined put them at a higher risk. The NHTSA also indicates that 1830 drivers between the ages of 15 and 20 died in motor vehicle accidents in 2017, an alarmingly high rate.
Motor vehicle crashes are still one of the leading causes of death for people between the ages of 15 and 20, according to the National Center for Health Statistics. The factors that contribute to the increase in fatal accidents according to the Centers for Disease Control include:
- A low percentage of teens wear their seat belts.
- Teens are more likely to speed.
- Teens are more likely to allow shorter headways.
- Teens are more likely to drive late at night and on weekend nights
- Teens are more likely to interact with their cell phones while driving
Best insurance premium discounts for 16-year-old drivers
Good grades – The full-time high school and college student with a certain GPA can avail of the reduction in rates. The excellent student category includes students who have a GPA of 3+ and have been recommended by their education institute. However, the students have to be mindful that discounts are available.
Driving tracker – Insurance companies also provide teenage drivers with a telematics driving tracker, which reduces the rates after showcasing responsibility and demonstrating that you drive safely. Let’s take an example to explain this better. If you have a driving tracker discount, they will display your action while you are behind the wheel, for example suddenly starting or stopping, or swerving on the road. These plug into your car’s diagnostic port or use a mobile app to track your habits.
Pay-in-full – The teenage driver can get a discount on their car insurance from most insurers by paying for the entire plan in full, rather than breaking the cost up by month.
How to get the best car insurance for 16-year-old drivers
Getting the best car insurance for a 16-year-old is vital since it ensures the safety and financial security of you and your family. Even though car insurance for teens can be expensive, you can often find options to fit your budget without sacrificing coverage. Your Independent Insurance Agent is able to shop around and get quotes from multiple insurance companies. Your agent will help to determine the average rate in your area for adding a 16-year-old to your insurance policy and discuss and compare coverage options and discounts that will best fit your insurance needs.