Will Adding A New Driver Raise Your Rates?
Why Are New Drivers So Expensive?
Adding a new driver (especially a male teenage driver) to your auto insurance policy will drive your rates up. There are some precautions you can take to keep the rate change low, but regardless you will see an increase. New drivers are naturally more accident-prone, mostly due to their lack of experience. In fact, the Centers For Disease Control and Prevention reported that car accidents are the leading cause of death for those ages 15-20. All of this leads to a rate increase of (on average) 78%, though that number has been decreasing over the years. 78% of your auto insurance policy can mean an increase of over $500, easily, just for adding your kid.
Improvements in driver safety technology and greater safe driving awareness have led to a decrease in teenage driver accidents, and therefore a decrease in risk for insurers, lowering costs. Even more so, states are increasingly adding “graduate” driver programs to better prepare teenagers for the road. These programs include laws that prevent teenagers from riding with several friends in their car, prevent them from driving at night, prevent them from driving long hours, and more. They usually come with license restrictions that dictate their driving capabilities. Keeping teenagers from driving with rowdy friends in the car and from going on long road trips can drastically lower risk and rates.
How To Reduce The Costs Of A New Driver
Some insurers offer discounts to students with good grades. Others offer discounts if you track your safe driving with an app. Plus, anyone can take a defensive driving course to lower rates. Generally, auto insurance rates will decrease once your young driver reaches 25 years old. It may be worth taking them off your policy before that so they can get their own, which may be cheaper by the time they’re in their early 20’s.
If you need help insuring your son or daughter in Tennessee, speak to one of our licensed agents today for the best deal and the best customer service. Call us today at 615-964-5020.