As a teenager with a new driver's license, you'll learn that car insurance rates aren't the cheapest. And, if you're a teenage guy, your rates are likely higher than those of your female counterparts. While this may not seem fair, there are numerous reasons why teenage guys cost more to insure.
Why is Car Insurance More Expensive for Teenage Guys?
Car insurance companies consider teenage boys a higher risk than their female classmates. Studies show that compared to women, men follow fewer of the rules that are in place to prevent accidents:
Men are 10% less likely to wear a seatbeltcompared to women.
Men are more likely to get a DUI behind the wheel.
Men engage in more reckless driving.
Men are more likely to get into an accident because of reckless/poor driving habits.
Men are less likely to follow speed limits.
Although not every male disregards the rules of the road, there have been enough statistics that prove that they are more likely to. Unfortunately, you have to deal with these higher rates until the age of 25 if you keep a clean driving record.
What Makes Teenage Insurance Rates Expensive?
Teenage drivers are new to the road, so insurance companies don't know who they are working with. A teenager could be a reckless and distracted driver or someone who is cautious and follows all of the rules. Other factors that come into play include:
The type of vehicle on the insurance policy (color, age, year, make, model, etc.).
Driving record and moving violations.
Age and credit history.
It just takes time to prove your driving skills to the insurance company. Once the insurance company knows what type of driver you are, your insurance rates will start to adjust to reflect it.
How Much Does It Cost to Insure a Teen Driver?
According to a 2022 rate analysis of car insurance, the average cost of adding a teenage driver between the ages of 16 and 19 to their parent's insurance policy was $3,798 a year. When a family adds a teenage daughter to their policy, it can up the parents' rate by 50%. But a teenage son? That'll increase rates by 100% on average.
These rates can jump to as high as $10,000 a year if a teenager decides to get their own car and insurance policy.
Rates also depend on how many cars you have in your household. Adding a teenage driver to a household with one car will likely increase your rates by 44%, 58% with two cars, and 62% with three cars.
How Can You Lower Your Insurance Rates with a Teen Driver?
Car insurance rates are already high before a teenage driver gets added to a policy. Fortunately, most insurance companies have policies in place to help lower your rates. Some of these options include:
Safe driver discount — Lowers your rates based on your teen's behind-the-wheel performance.
Good student discount — If your teen gets good grades, they'll likely be good drivers as well.
Own a modest car — Rates are much lower for an older sedan compared to a new luxury or sports model.
Pay all at once — Some companies offer a discount if you pay your premium for the year all at once compared to every month.
Take a driving course — Completing an online course or one at school will drop your rates significantly.
Push your teen to be a good student and a safe driver, and you'll see the rewards when it comes time to pay your premium.
Lower Your Teen's Car Insurance Rates
Car insurance companies consider teenage drivers high risk. It just takes time and effort to convince them that you are a safe driver so your rates start to drop. Try signing up for a driver's ed course through IDriveSafely.com. This class will lower your insurance rates while teaching you the rules of the road.
