Best Cheap Car Insurance For Teens Of October 2022
Parents’ fears seem to be exacerbated by how expensive it is to add a child to their car insurance policy when their teen gets behind the wheel.
Teen auto insurance rates are notoriously high due to the greater risk new drivers pose to insurance companies. We analyzed rates from 78 car insurance companies nationwide and found that the average increase for adding a teen driver to a parent’s policy is $2,121, doubling the premium typically paid.
Despite the high cost of young drivers, shopping around can make a big difference. To help parents find the best cheap car insurance for teens, we scored the major insurance companies based on price, level of complaints and collision repair.
Lower insurance costs for teen drivers
You may not be able to avoid a significant rate increase when you add a teenage driver to your car insurance policy, but there are ways to minimize the hit to your wallet.
Keep your teen on your policy
Parents looking for the cheapest car insurance should be aware that it is usually less expensive to add a teen to a parent’s auto insurance policy than to put the teen on their own policy. If you’re in doubt, though, run your insurance agent quotes for both scenarios or compare quotes online for the total cost of two different policies. The quote is free, so there’s no harm in checking which way is the cheapest.
Make sure you’re getting a discount
Common relevant discounts for teenagers include the good student discount (usually for a B average or higher) and for college students, the “distance student” discount. If the student attends school 100 miles or more from home, without a car, you may qualify for a price break on their rates.
Additionally, teen driver insurance programs can provide both discounts and valuable driving skills training. Keeping accidents off a teen’s record will protect your future rates.
Now is the time to compare car insurance quotes, especially if you haven’t done so in a few years. For example, among the companies we analyzed in California, coverage for two parents and a 16-year-old ranged from about $2,000 per year (USAA) to $6,000 per year (Nationwide and Camper), for a policy with typical coverage of $100,000. Bodily injury liability coverage per person and $300,000 per accident.
Wait for it
Car insurance rates will generally begin to decrease around age 25. See Forbes Advisor’s analysis of auto insurance rates by age and gender.
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Insurance programs that help teen drivers
Getting a driver’s license gives teens a sense of independence, but it can also cause stress and anxiety for parents. Without parental supervision, inexperienced teen drivers face a series of distractions that often result in bad driving behavior and car accidents.
While the only way for a young driver to gain experience on the road is to continue driving, some auto insurance companies have programs to help teens curb bad driving behaviors and improve driving skills. As an added bonus, some insurance companies offer discounts when a teen successfully completes their program.
Here is a sampling of teen driver programs:
- TinSmart: TinSmart was originally developed in partnership with Allstate. The program uses interactive learning videos, driving simulations, and parent and teen activities to help address some of the top behavioral and social factors that lead to car accidents.
- Teen Safe Driver: A free American family insurance app that monitors teen risky driving behavior. Once a teen drives 3,000 miles or completes one year of the program, you’ll get a discount on your premium from American Family. The discount automatically applies after your teen turns 21 until renewal.
- SmartPath: Hanover Insurance’s mobile app tracks teens’ driving habits and provides scores based on factors such as distracted driving, hard braking, speeding and the time of day they’re driving. As teens improve their driving scores, they can earn Amazon rewards and you can get discounts on your car insurance.
- Steer Clear: This State Farm car insurance program offers a five-hour training module, which includes driving scenarios, puzzles and videos. To receive a certificate of completion, teenagers must complete five hours of driving practice with a minimum of 10 trips. Upon completion, you can send the certificate to your insurance agent for the discount.
Is it cheaper to put my teen on their own car insurance policy?
No. It is usually cheaper to have a teenage driver on a parent’s policy. There are some cases where a separate auto insurance policy can be cheaper. For example, if a parent has a sports car on the policy, and the insurance company matches the teen driver with the most expensive vehicle (some do), the combination of car and novice teen driver can skyrocket rates.
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How to Buy a 19 Year Old Car Insurance for Teens in India?
It is important for parents to buy a car insurance for their children. A package car insurance policy value can help you cover the cost of any medical emergency or damage to the car. 19 year old car insurance in India comes with a certain amount of coverage, so it’s important to pick the right one for your child.
Parent’s package policies provide coverage for children due to injuries and damage caused by an accident and are usually sufficient for the cost of repairs, medical bills, and loss of earnings.
It’s not easy to find affordable car insurance with a lot of insurers when you’re a 19-year-old. One reason that car insurance for a 19-year-old is so high is that teens are statistically much more likely to be in an accident. Regardless how safe of a driver you are, car insurance companies will deem you high-risk if you’re a teen.
There are options, however, so don’t be too discouraged. If you want to get cheap car insurance for 19-year-old drivers, start comparison shopping today by entering your required details. The average rates might be a little higher, but you can still get free quotes. At PolicyBachat we cater unbiased comparison of quotes, 24*7 customer assistance team your motive is to give our customers right quotes with compare car insurance rates online.
- Go to compare car insurance quotes online at PolicyBachat.com
- Fill in required details select your Car Model & Variant, RTO Location, Registration date, and Email address.
- Click on the “START SAVING MONEY”.
- Choose between a Third-Party Liability Only and a Standard Package (Comprehensive Insurance).
- Premiums with different insurance companies are displayed with low premiums
- Select required Add-ons/Riders and discounts, or you can Edit Policy Details as per your requirement
- After that fill in the ‘vehicle owner details and personal details’.
- Purchase best Car Insurance Policy using online payment
How are car insurance rates determined?
Car insurance rates vary based on a number of demographic details. Car insurance for 19-year-olds is particularly expensive because these drivers are seen as less risk-averse and more likely to have an accident resulting in a claim. The most common factors considered when determining auto insurance rates are:
- Driving experience
- Driving habits
- Motor vehicle records
- Accident history
- Vehicle type and safety record
- Coverage Limits
- Rating region.
- Credit-based insurance score
Insurance for 19-year-olds is usually expensive, not only because of the driver’s age but also because of other factors that apply to teenagers. Younger drivers typically have shorter driving histories and lower credit scores. These factors further affect the premium rates.
Many people wonder about the role gender plays in finding cheap car insurance for your teenager. While the average cost of car insurance for 19-year-old males is generally more expensive than for 19-year-old females, this trend evens out with age and maturity.
Auto insurance rates: 50% score. Because having a teen driver on an insurance policy is often wildly expensive, we gave weight to this category. We used data from Quadrant Information Services to compare rates among companies for policies with two parents and one teen. This allowed us to evaluate not only the cost of adding the teen driver but also the base rate for the parent policy.
Average rates are based on a policy with 100/300/100 coverage ($100,000 bodily injury liability per person, $300,000 bodily injury liability coverage per accident, $100,000 for property damage liability), plus collision and comprehensive coverage. Average rates assume good drivers on the policy with no accidents or tickets.
Collision repair score (25% of score): We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments. CRASH Network’s 2021 Insurer Report Card used grades from 1,101 collision repair professionals to gauge the quality of auto insurance providers’ collision claims service. Auto body shop professionals give an insider view of each company’s approach to repairs. It’s preferable that insurance companies have processes in place that help speed up claims processes and repairs. They also don’t apply pressure to reduce costs or use lower-quality parts.
Complaints (25% of score): We used complaint data from the National Association of Insurance Commissioners (NAIC). Most auto insurance complaints center on claims, including unsatisfactory settlements, delays and denials. The data collected by the NAIC is provided by each state’s department of insurance, which is responsible for logging and monitoring complaints against the insurance companies that operate in their states.