Tips on Teenage Insurance

by Renee Dietz | More from this Blogger

We were talking about car insurance, teenage drivers and single parents when some suggestions came up about making sure that the teenager driver is covered under one or both parent's insurance policies. Being safe rather than sorry is good advice, not only when driving but also when making insurance decisions.

I went through the years with a teenage son and daughter so I wanted to pass on some valuable information. The industry emphasizes that not being completely honest about having a teenager driver can be "the worst case scenario" because if the young drive is not listed on the policy of the parent who owns the car they are using, the company may have reason to refuse to pay a claim.

Why are the insurance companies so concerned about teenage drivers, to the point of putting out information for two-parent households, single-parent households and many unique situations in which teenagers drive? Well, for one thing, teenagers accounted for 14% of all drivers involved in motor vehicle fatalities. That means that of every 100 accidents in which a person died, 14 of those accidents involved teenage drivers. The National Highway Traffic Safety Administration has also reported that drivers who are 16 and 17 years of age have three times as many wrecks as do 18 and 19-year-old drivers.

Therefore, you will find that the cost of insuring a teen is higher than for other groups of drivers. However, this should not keep you from giving all the information about your teenager to the insurance agent because it will be a headache later. The Insurance Information Institute warns that the cost of adding a teenage driver to the parent's policy can increase the costs 50 to 100%. For example, if your insurance costs $500 now, adding a teenager could push it to $750 or as much as $1,000. Just remember, as the industry reports show, it is better to pay a little more now than to pay a lot later.

Learn more about Renee Dietz

I have been a successful, published writer for the past 26 years, offering a writing style that is informative, creative, and reader-friendly.

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