When it comes to insuring a young driver, parents are going to notice right off the bat that the premiums are going to be much higher than they were before. It costs a lot of money to have a teenage driver in your home. Some parents may be wondering why this is the case. There are several factors that play a role in the high cost of auto insurance for your teen driver. Signet Insurance Group is here to talk about some of the reasons you will see an increase in your auto insurance premiums when you add your young drivers to your policy.
Why Are Teen Drivers so Expensive to Insure?
Not only is auto insurance steep for young drivers, but if you are a young male driver, it is even more expensive. This is due to several different factors that come into play. Here are some of the reasons teen drivers are so expensive to insure.
– Car Accidents: Study after study have shown that young drivers are going to have a greater chance of being in an auto accident than a more experienced driver. There are a couple of things that a young driver can do to help with lowering insurance premiums like taking a defensive driving course or keeping their record squeaky clean.
– Limited Driving Record: Not only are these drivers going to be more accident prone, but they also don’t have much of a record to look at either. With a very limited record, it is a bigger risk for an auto insurance company to insure them.
– Driving Distractions: When it comes to teenagers, they have proven that they are far more likely to be distracted while driving than someone that is older and has more experience. Whether it is because they have a phone that seems to be a never ending stream of texts and calls or a bunch of their friends in the car with them, they are more prone to being distracted than older drivers.
– Credit Scores: Did you know that your credit score has an impact on how much you pay for auto insurance? Well, it does. As a teenager, they don’t have much as far as a credit score goes. This means that they don’t really have a credit score to judge their driving off of. There are studies that show that those with a low credit score are more likely to file a claim than someone that has a high credit score.
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What it all comes down to is this, insurance companies are carrying a higher risk when they take on a teenage driver. For this reason, parents are going to pay more to insure their teenagers. However, if you have a teenager than you need to add to your auto insurance policy, the best way to get the best deal on your insurance is to shop around. You can turn to Signet Insurance Group to help you find the best auto insurance rates for your family. Call us today!
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