Teen drivers tend to pay more for car insurance coverage, in part because of lack of experience. The fact that teens are statistically far more likely to be involved in car accidents means that they are a higher risk to insure. Insurance company underwriters consider this when determining whether to offer to insure a teen driver and setting coverage rates.
Each company uses different criteria to determine the level of risk that a particular driver presents. Not all insurance companies charge the same rates for drivers who present the same level of risk. Shopping around for coverage is a good strategy to get the best possible insurance rate for teen drivers.
One strategy that can work for parents who want to arrange coverage for a teen in their household is to ask about adding the young person to their existing car insurance policy. The car insurance company should be able to extend any discounts on coverage to the newly-added driver in that situation.
Parents who have teens who are learning to drive should contact their car insurance company to find out whether the young person should be added to their existing policy when they get their learners’ permit or if this can wait until the teen receives a driver’s license. If the teen doesn’t have to be added to the policy immediately, the parent may want to review his or her existing coverage and get quotes from other providers, too.