The Best Car Insurance For Teen Drivers: How To Save On Your Teen

Car insurance is one of those pesky expenses that we just won't ever get rid of if you're looking at car insurance for your teen or you're a teen yourself then you might quickly realize that car insurance can get really expensive in this video we're going to take a look at why car insurance is so expensive for teens and how to keep costs low hey guys.

Welcome back to the college investor investing and personal finance for Millennials so I never thought that I would be passionate about car insurance until I started paying into it and realizing just how expensive these rates can be this is especially true for teens now according to the CDC teens ages 15 to 19 make up six and a half percent of.

The u.s. population and they make up 8% of motor vehicle accidents it's true that teens are new drivers you're inexperienced you've just started driving so pardon surance companies are going to view that as more risky because you just haven't been on the road as long now as you get more driving experience and you don't have any.

Accidents and then your premium rates are going to decrease over time so when you're first starting out driving as a teen how do you get the cost of car insurance lower there's a couple of different ways that you can save and parents are probably not going to like this answer but adding your teen to your car insurance policy is going to make it.

A lot cheaper for that teen as opposed to having them with a standalone policy now we found on car insurance calm that a 16 year old can save an average of $2,000 per year if they were added to their parents policy if you're a teen and you're on your own policy you could pay 130 to 140 percent more just by being on.

A separate policy from your parents now of course if you're a parent and you're adding your team to your car insurance policy you're on the hook for any liability if that team gets in an accident so there's pros and cons to both but if you are willing to work with your teen on how to either split those expenses or just understand what kind of.

Liability you're taking on you could still save a lot of money by grouping your policies together there are a few other ways to save money on car insurance policies if you're a teen the first is if you take a driver's ed course you submit that certificate of completion to your car insurance company they could give you a discount for that.

Another discount that you could take advantage of our good grades check with the insurance company see if you can submit report cards and that could give you a discount to save even more on your car insurance premium there's obviously a lot of factors that go into how much you'll pay in car insurance that includes things like where you live your.

Driving history what kind of car you drive and then what kind of coverage you have is it just liability or is it comprehensive so we did a small test to take a look at five different states and what we did is we looked at a 50 year old driver who has a clean driving record and what it would look like if we added an 18 year old driver to that.

Policy here's what we found out so we'll start with California without a teen the average cost was around $1,300 with the teen those costs were dramatically different across different insurance companies 2700 dollars with Mercury all the way up to fifty-seven hundred dollars with Geico that is an insane difference just by adding a teen to a.

Clean driving record with somebody who who has a very long history of driving that's really a big difference now let's take a look at Florida without a teen a driver in Florida would be paying between seventeen hundred and twenty three hundred dollars in car insurance premiums and now when you add that teen there is a wide difference in.

Car insurance premiums across different companies we saw forty eight hundred dollars with State Farm $9,100 with Allstate which is insane and thirty five hundred dollars with Geico the next one is Pennsylvania without a teen you'd be paying around eleven hundred dollars with the teen this is actually pretty pretty balanced with the.

Teen and only added a couple hundred dollars in most cases fifteen hundred dollars with Geico and then up to eighteen hundred dollars with nationwide New York without adding a team to your policy you're looking at seventeen hundred dollars with a teen the jump was a little bit more than what we found with Pennsylvania you're looking at.

Roughly twenty two hundred dollars across the three insurance companies we looked at then we looked at Texas without a teen your car insurance premium is $1400 and wizza teen it was pretty evenly split we saw the lowest with nationwide at twenty two hundred dollars up to twenty five hundred dollars with State Farm now.

It's pretty clear that states that have a lot the large population are going to see the biggest discrepancies between adding a teen or not having a teen on your policy but either way what you can do is you compare what a standalone policy would look like for if you're a teenager what a standalone policy would look like versus being added to your.

Parent's insurance policy and just compare the numbers that is the best way to figure out what kind of savings you can get and don't be afraid to look outside of your current car insurance provider if you're a parent just to see what it might look like to add your teen into that that's the best way that you're going to save along with asking.

For driver's ed course and good grades discounts now for more information on saving on car insurance and more be sure to visit the College investor calm you
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