En Español
For most parents, the day a teen gets his or her license is a frightening day. There are good reasons for parents to be concerned about a new teen driver in the family. One major issue is insurance rates will go up significantly when teens are added to the policy. The biggest concern for most parents, however, is that there is a significant risk of a teen driver becoming involved in a car accident.
An experienced personal injury lawyer knows insurers raise rates for teens because of the significant chance these young people will get into a collision and hurt themselves or others. The fact insurance companies raise rates so much for teens just underscores how dangerous these young people are on the roads.
NBC News reports the average insurance premium increase nationwide when a teen driver is added to the policy of a married couple is an 80 percent increase in premiums. Insurers measure risks when setting premiums, so this significant jump should alert parents of the major risks a teen faces when he starts driving.
Car crashes involving teens resulted in almost 3,000 deaths and 400,000 injuries in 2013. In two-thirds of the collisions involving a teen driver, someone besides the teenager sustained injury or was killed. The “impact of their [teenagers’] crashes extent well beyond the teen who is behind the wheel,” according to the president and CEO of the AAA Foundation for Traffic Safety. Insurers know a teen who is involved in a crash could become liable for all losses caused to others and the risk of paying out large damage claims prompts the premium increase.
The younger the teenager, the greater the chances of a collision and the more significant the rise in insurance premium costs. On average, insuring a 16-year-old will cause a 96 percent increase in car accident premiums while insuring a 19-year-old causes only a 60 percent increase in premiums.
Female teenagers also present a less significant risk than male teen drivers. The average premium increase when adding a female teenager to insurance is 67 percent compared with a 92 percent increase for adding a teen male to a policy.
There are some steps parents and teens can take to try to reduce the financial impact of adding a teenager to a policy. Teens who maintain at least a B average are considered to be less high risk and discounts may be available from insurers of as much as 25 percent when parents and teens ask for a good student discount.
Parents may also add vehicle monitoring systems to cars in order to get a discount from some insurers. Vehicle monitoring systems could be a good way not only to help keep insurance costs low but also to make sure teens do not engage in some of the highest risk behaviors leading to collisions, like driving above the speed limit. By monitoring teens, parents could help to keep their kids and others on the road safe.
It’s important for parents to understand the full financial implications of adding a teen driver to their insurance policy. Insurance companies assess risk based on various factors, including the driving history of the teen, the type of vehicle being insured, and even the geographical location. For instance, in El Paso, where traffic density and road conditions might differ from other regions, these factors can influence the premium rates significantly. By being aware of these variables, parents can make more informed decisions and potentially explore insurance options that offer better rates for their specific circumstances.
Many insurance companies offer safe driving programs that can help mitigate the high costs associated with insuring teen drivers. These programs often include safe driving courses and certifications that teens can complete to demonstrate their commitment to responsible driving. Participation in such programs not only educates teens on safe driving practices but can also lead to discounts on insurance premiums. Parents should actively seek out these opportunities and encourage their teens to participate.
Parents play a crucial role in instilling responsible driving habits in their teens. Setting clear rules and expectations about driving behavior is essential. This includes limiting nighttime driving, restricting the number of passengers, and enforcing the use of seat belts at all times. Regular discussions about the dangers of distracted driving, such as using mobile phones while driving, can reinforce the importance of staying focused on the road. By fostering a culture of safety at home, parents can help their teens develop habits that reduce the likelihood of accidents.
Modern technology provides parents with various tools to monitor their teen drivers’ behavior. GPS tracking devices and smartphone apps can provide real-time data on driving speed, location, and even sudden braking or acceleration events. Some insurance companies offer discounts for using these monitoring tools, as they can demonstrate a proactive approach to ensuring safe driving. Parents should explore these technological solutions to enhance their ability to supervise and guide their teen drivers.
Adding a teen driver to an insurance policy undoubtedly leads to higher premiums due to the increased risk associated with young, inexperienced drivers. However, by understanding the factors that influence these rates, participating in safe driving programs, encouraging responsible driving habits, and utilizing modern monitoring technologies, parents can manage these costs more effectively. The ultimate goal is to ensure the safety of teen drivers while also protecting the financial interests of the family. By taking a proactive approach, parents can navigate the challenges of ensuring a teen driver and contribute to safer roads for everyone.
By taking proactive steps to educate and monitor young drivers, parents can help reduce the likelihood of accidents and contribute to a safer driving environment for everyone.
Michael Gopin PLLC understands the complexities and challenges that come with teen driving and the associated insurance issues. Our experienced team is dedicated to helping families in El Paso navigate these challenges by providing legal advice and support in the event of an accident. If your teen has been involved in a car accident, or if you have any questions about your legal rights and insurance claims, don’t hesitate to contact us.
Michael J. Gopin has practiced law in El Paso since 1987. Even after more than 30 years, he still remembers his first jury case. It was two weeks after receiving his license, when he represented a person whose life had been forever changed after being blinded in a work-related incident...
We are experienced El Paso personal injury lawyers. Give us a call and you’ll be taken care of! (915) 333-3333
En Español