The Cost of Insuring a 16 Year Old Online - Insurance Articles and ...

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Do you remember the excitement you had in getting your license and taking the car out for your first outing? Maybe that excitement began months prior when you received the learner’s permit and only grew until the time came for the driving test, only to have nerves replace that excitement. There are thoughts of “what-ifs” and hopes that the parents will let the teen drive when they want. Rarely does the new driver think about insurance, unless the parent has brought it up. They are too wrapped up in the possibilities of being on the road on their own instead of concentrating on how much their insurance is going to cost.

Figuring out how much it will cost to insure the 16 year old should be a shared responsibility between the teen and the parent. They need to work together to find the best prices and make sure the teen has an understanding of the value of car insurance. By learning what determines the price of their policy together, there is a better chance they will end up paying the least amount possible for the policy.

What Is The Cost? The cost of insuring a 16 year old heavily depends on a few factors, including their risk category, the vehicle they are driving, and how often they drive.

A 16 year old driver is instantly placed into the “high risk” category, whereas the parent has had time to show what kind of driver they are. Over time the risk category of the 16 year old can change, as long as they prove to the insurer that they aren’t a high risk driver. The reason they are instantly placed into the high risk category is because statistically, new, young, 16 year old drivers are commonly involved in traffic incidents. The insurer instantly assumes they will need to pay for a claim involving the new driver, and because of that they charge the new driver high rates.

Parents and teen drivers should discuss ways they can get themselves out of the high risk category. They should talk about how accidents and traffic tickets affect their insurance rates, and how avoiding them altogether will keep rates low. The best way to avoid accidents includes eliminating distractions in the vehicle. Rules can be made involving no teen passengers in the car, no talking on a cell phone while driving, and the decibel level of the radio to help lessen or eliminate the 16 year old driver becoming distracted. One way to avoid traffic tickets would be to reinforce the driving laws and making sure there are no distractions that would keep the teen from noticing traffic light changes, stop/yield signs, or speed limit changes. Focusing on the road and surroundings are a very important part of driving, and ignoring them or becoming complacent behind the wheel will eventually lead to accidental situations, which become expensive on a 16 year old’s insurance policy. With some insurers, a teen who has three years of perfect driving – meaning no tickets or accidents – they can become eligible for the good driver discount.

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