Why Teens Pay More for Car Insurance
Generally, car insurance for teens tends to be more expensive than it is for older drivers. Teens are young and inexperienced and still working their way up the ranks, so to speak.
However, there are ways teens can get affordable auto insurance, and we’ve laid out a few basics below.
Why Do Teens Face Higher Rates?
Statistically, teen drivers are more likely to be involved in auto accidents, get traffic tickets, and commit traffic violations than are older drivers. Car insurance companies take this into consideration when determining how high a risk it is to insure teen drivers.
Fortunately, there are ways to keep teen car insurance rates low.
Do Males Pay More for Car Insurance?
Men typically pay for more for car insurance than women, in general. This difference in rates is based purely on statistics.
For example, statistically, male drivers younger than 25 are more likely to:
- Rack up traffic infractions, including everything from speeding tickets to serious violations like driving under the influence (DUI).
- Avoiding wearing their seatbelts.
- Choose faster, flashier vehicles.
- Drive with more passengers.
- Drive more often than do females.
Remember, car insurance companies take as much as possible into account when determining your risk factor (and thus your car insurance rates), so male drivers who take advantage of money-saving offers—including keeping clean driving records!—can get low rates, too.
Other Car Insurance Rating Factors
Many insurance rating factors vary by state and individual insurance companies, but some common rating factors include:
- Your age and gender. As mentioned above, younger drivers will usually pay more. Also, female drivers statistically get better car insurance rates.
- Your marital status. Married drivers often get lower premiums.
- Your location, including where you park your car. Drivers in rural areas who park in garages tend to get lower rates than those who live in urban cities and park on the street.
- Your driving record. Driving records play a big role in determining both rates and potential discounts. When looking at your driving record, insurance companies consider:
- Traffic violations and driving record points.
- Driver license status, including prior or current suspensions and revocations.
- Car accidents.
- Your vehicle’s make and model. Older, modest vehicles usually get better rates than newer, flashier models.
- How often you use your vehicle. Do you drive every day, or just a few times a week?
- Your occupation. Do you use your vehicle for work, or is it for pleasure only?
- Your auto insurance history. Ideally, you’ve never had a gap in coverage; if you have, it could affect your rate quote.
- Prior car insurance claims. How often have you filed claims in the past, and what were the reasons?
Tips on Getting Cheap Insurance for Teens
There are several ways you can get more affordable car insurance as a teen, such as:
- Choosing a safe vehicle. Car insurance companies are more likely to offer lower rates for modest, safe vehicles than their flashier counterparts.
- Getting on your parents’ insurance policy. Technically, you don’t need your own car insurance policy as a teen. You can get on your parents’ policy. Even though that will increase their rates a bit, it will probably be cheaper than paying for two policies. However, it’s good to compare prices for both.
- Opting for higher deductibles. Ultimately, this is your parents’ decision (if you’re on their policy), but paying higher deductibles often lowers monthly premiums. Just be sure to choose deductibles you can afford because, unfortunately, sometimes accidents happen.
- Completing driver’s education. Auto insurance providers love seeing driver education completion certificates. Not only does it mean you’ve learned your state’s road rules, but you’ve also gotten valuable behind-the-wheel training. Your school curriculum or state might require Driver’s Ed, but if not, seriously consider taking a course to lower your car insurance rates.
- Getting good grades in school. Many car insurance companies offer good student discounts for making good grades in school. Your provider might offer some financial relief for keeping it in the A- to B-average range!
- Keeping your driving record clean. Clean driving records play a huge role in determining car insurance rates—for teens and adults alike. Drive safely and keep your record clean and you’re more likely to keep your rates low.
- Leaving your car behind when you go to college. Some insurance providers offer discounts if you leave your car behind when you head off to college. You might be marked as a “sometimes driver” or get a “resident student” discount. Your your parents might even take you off their policy altogether (until you start driving again).
Remember, these are just a few money-saving options. Always talk to your car insurance agent about additional ways to save money on coverage.