Key items in search for teen’s car insurance

If you have a 16-year-old itching to get behind the wheel of the family fourdoor, you maywant to tamp the brakes until you’ve figured out the cost of auto insurance.

Sure, you probably knowit could cost several thousand dollars in premiums to add a young driver to your policy. But what type of coverage do you need? Collision, comprehensive, along with liability? How muchdoes where you live factor into your rate? Howcan you save money, and what are some of the best car insurers for teens?

Two recent reports— fromWalletHub andBankrate.com— explore what can be a nerve-wracking process for parents and an exciting milestone for teens.

Because young drivers have limited driving experience and are more likely than older drivers to be involved in car accidents, their annual premium can be considerably higher. Car crashes remain one of the leading causes of deaths among 13-to 19-year-old drivers, according to WalletHub analyst ChipLupo, author of the company’s "2025 Best andWorst States forTeen Drivers" report.

"It’s critically important to focus on safety first," Lupo said, so enroll your teen in driving classes, reinforce seat belt use, and set strict rules around phone use and impaired driving.

According toBankrate research, parents adding a 16-year-old to their policy as opposed to a separate policy experience the highest average rates, with an average annual full-coverage premium of $5,923 for a male teen and $5,522 for a female teen. That’s nearly double the cost of car insurance for older adults.

Many factors determine auto insurance premiums, one of them being the state in which you live. Every state has its own regulations regarding the type and amount of insurance that is required to drive legally.

"The best states for teen drivers promote easy access to driving classes, strict lawsfor bad behavior on the road andwell-maintained roads," Lupo said.

WalletHub’s research rankedNew York, Oregon, NewJersey andWest Virginia as the best states for teen drivers; Montana, Missouri, Wyoming, Mississippi andNorthDakotawere theworst. New York, for example, has the second-fewest teen-driver fatalities per capita and the fourth-lowest percentage of driverswho use phones while driving.

If your teen has a car, some financial planners suggest keeping the child on your auto policy until they leave home and establish their ownresidency, which could allowyou to maintain multicar policy discounts.

Some insurance companies provide student discounts, so it pays to shop around for the lowest rate. Progressive’s Snapshot program, for example, rewards teens based on howthey drive.

In addition, its mobile app can reveal if your child is driving distracted.

State Farm offers its Steer Clear discount programfor thosewhoare younger than 25, haven’t caused any accidents in three years and complete a driver education program.

Nationwide offers two usage-based programs, SmartRide and SmartMiles, for families that don’t drive often.

In addition to those three insurers, Auto-Owners and Geico are among the best car insurance companies for teens, according toBankrate’s research. Questions, comments, column ideas? Send an email to [email protected].

SteveRosen

Kids & Money