Teen Insurance: Insuring Your Car and Your Child

Your teen is driving, congratulations! I’m sure you’re excited. However, teen insurance is expensive. Insuring a teenager could potentially double the cost of her family’s auto coverage. Insurance companies have their reasons for this, and their reasons affect you more than you think. First, adolescents represent the riskiest segment of the population and account for the largest number of fatal accidents. Added to this, and in the midst of an economic crisis, it should be noted that the estimated annual national cost of teen driving accidents is thirty-two billion dollars.

There is a need for driver education. Encourage your teen to make wise driving decisions. They must learn to have a good time and still be careful. While we probably won’t be able to eliminate teen drinking and driving, we can proactively encourage its decline. 25% of teen car accidents are alcohol related, so as parents we need to start driver education at home. Driver education classes are also available. These classes not only improve your child’s driving skills, but also lower insurance premiums. Drivers with formal education are less of a risk to insurance companies.

You can offset the hassles of teen car insurance. Choose a safe car to drive. The model you choose will directly affect the cost of your coverage. Try to include your teen on your family policy if you haven’t already. Again, consider driver’s education classes. Ask your insurance company about student discounts. Trust me, there are ways to save on insurance. The reason nothing is done. The positive changes that could take place in the world of teen insurance would take too long for anyone to care. By the time we implement the new driver’s education requirements and legislation that could eventually lower the cost of insurance premiums, parents and teens fighting for cost reductions would be decades older. And I haven’t read about any president passing a bill to eliminate the causes of high teen insurance costs, even though it could reduce the $32 billion we spend each year on teen car accidents and save precious lives. The solution is long term and, as of October 16, 2008, it is practically non-existent. If you are concerned, speak up where it counts and write to a state representative.