Plain and simple- Teenage drivers cost more because they get in more accidents and cost insurance companies a lot of money.
Not a big surprise there but the amount that insurance companies charge to add a young driver these days can be hard to swallow.
How then can I mitigate the cost to add a young driver to my policy?
- Make sure they have above a 3.0 GPA. The Good Student Discount is significant.
- Don’t buy them a car right away. If you have two vehicles and two adult drivers, a young driver can be rated as an “occasional driver” and will not impact your premium as much as if you add another vehicle at the same time.
- Teach them to drive defensively. If you think the cost to add a young driver is expensive, wait until they get into their first accident or get their first ticket.