It can be expensive to insure any driver, but it’s even more costly to insure a 16-year old. This group of young drivers lacks the experience needed to be considered a good driver and receive cheaper insurance. They have spent minimal time on the road and haven’t fully demonstrated they know of the best ways to stay safe. Often, it is young drivers who forget the basic laws and rules of driving resulting in accidents or the receiving of tickets. Car insurance companies plan on this and statistics prove it to be true, which is why they feel the need to charge outrageously high rates to 16-year olds. Unfortunately, there’s not much even the most responsible 16-year old can do to prevent this classification, but only at first.

Car insurance rates for a 16 yr old can gradually decrease as the teenager learns how to show their level of responsibility more effectively. The less risk that driver shows, the lower their rates will be. It’s not an instant process and will probably take a few years to prove, but it’s worth the effort. Over time their safety will show, especially as the years increase without any signs of traffic incidents. By utilizing their “safety skills” they could keep a clean record all the way through college and see a huge decrease in their premium from when they started driving. We have some ideas that can be used by any 16 year old driver to better their situation and work towards lowering their rates.

Determining Their Rates
The rates for a 16 year old are determined in the same manner as anyone else’s rates are figured out. Information about the driver and their vehicle are evaluated with considerations about how often they will make future claims. If the driver is deemed insurable, a representative will extend an invitation by providing the premium price or estimate of how much a policy will cost for a given time period. The policy periods usually run 6 months or 12 months, depending on the company’s terms. Some specific factors are the driver’s name, age, gender, birth date, and address. The vehicle information needed would include the year, make, and model of the car, its annual mileage, and how the car is used (e.g. taken to work, driven to school). Have these things available before you apply for insurance for a faster submission process.

The final factor that will affect the rates is the amount of coverage purchased. Obviously, the rates will be cheapest when minimal coverage is bought, but that may not be the best choice for your teen. While it is mandatory that all drivers carry basic liability, full coverage will help prevent paying even more out of pocket expenses when there’s an accident. There may be a time when Comprehensive and Collision are not needed, for example when the car has little cash value and it would cost more to pay for that added coverage than it would be to replace the vehicle. Not every 16 year old drives a brand new, fancy vehicle so not every option is needed. Medical assistance through Personal Injury Protection or Medical Payment should be considered for the teen, especially if he/she does not have adequate health insurance.

Ways to Keep Insurance Cheap
There are a few things the teen can do to keep their insurance rates down. First, and probably the most important, don’t get involved in accidents and avoid traffic tickets on your record. If the teen knows of the importance of driving safely and keeping their record clean from any tickets and accidents, they will be working towards getting cheaper rates quicker than if they didn’t care and got points on their record.

A second way to keep 16 year old driver insurance cheap is by driving safe. It sounds apparent, but sometimes common sense gets thrown out the window when they’re behind the wheel. Having a driver’s license does have its perks on a high school campus, but it can also lead to not obeying traffic laws to appear “cool” and gain friendships. Speeding through the streets with the radio blaring makes it difficult to see and hear small children when they play on the sidewalks. Talking or texting on a cell phone while maneuvering through traffic directs attention to the conversation instead of the surrounding traffic. Think twice before making a decision that could contribute to a traffic ticket or cause an accident.

Another option that should be discussed between the policyholder and the 16 year old is how the insurance will be paid. It can be split between the two parties or the teen could pay its entirety. There are two advantages to this approach. One, the policyholder saves money. Two, the teen learns about responsibility even more so knowing that this is a privilege they are paying for. This might help them think twice about driving safely since they’ll be the ones to pay for any price hike in rates due to getting a ticket or accident.

One final suggestion would be to limit the usage of their vehicle. Some states require that new drivers only drive on the road when the sun is up. As soon as the sun sets, those drivers are not to be behind any wheel. Pleasure driving might be limited if there’s really no destination involved to avoid unnecessary traffic incidents. Allowing the 16 year old to drive to and from school and/or work could lower those incidents as well.

Finding auto insurance for 16 year old drivers can prove to be a time of mixed emotions. Your child is growing up and gaining more responsibility as an adult. If the teen wants the opportunity to have a license, it should be granted unless they have demonstrated ill behavior. When insurance isn’t affordable, consider looking into discounts offered by your insurer or ask the teen to help with the cost. It is possible for most teenagers to afford driving. Use our resources to help further the process along.