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The Best Car Insurance For Teen Drivers: How To Save On Your Teen - YouTube
Channel: The College Investor
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car insurance is one of those pesky
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expenses that we just won't ever get rid
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of if you're looking at car insurance
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for your teen or you're a teen yourself
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then you might quickly realize that car
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insurance can get really expensive in
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this video we're going to take a look at
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why car insurance is so expensive for
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teens and how to keep costs low hey guys
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welcome back to the college investor
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investing and personal finance for
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Millennials so I never thought that I
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would be passionate about car insurance
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until I started paying into it and
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realizing just how expensive these rates
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can be this is especially true for teens
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now according to the CDC teens ages 15
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to 19 make up six and a half percent of
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the u.s. population and they make up 8%
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of motor vehicle accidents it's true
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that teens are new drivers you're
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inexperienced you've just started
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driving so pardon surance companies are
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going to view that as more risky because
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you just haven't been on the road as
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long now as you get more driving
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experience and you don't have any
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accidents and then your premium rates
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are going to decrease over time so when
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you're first starting out driving as a
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teen how do you get the cost of car
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insurance lower there's a couple of
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different ways that you can save and
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parents are probably not going to like
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this answer but adding your teen to your
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car insurance policy is going to make it
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a lot cheaper for that teen as opposed
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to having them with a standalone policy
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now we found on car insurance calm that
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a 16 year old can save an average of
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$2,000 per year if they were added to
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their parents policy if you're a teen
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and you're on your own policy you could
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pay
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130 to 140 percent more just by being on
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a separate policy from your parents now
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of course if you're a parent and you're
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adding your team to your car insurance
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policy you're on the hook for any
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liability if that team gets in an
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accident so there's pros and cons to
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both but if you are willing to work with
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your teen on how to either split those
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expenses or just understand what kind of
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liability you're taking on you could
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still save a lot of money by grouping
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your policies together there are a few
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other ways to save money on car
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insurance policies if you're a teen the
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first is if you take a driver's ed
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course you submit that certificate of
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completion to your car insurance company
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they could give you a discount for that
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another discount that you could take
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advantage of our good grades check with
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the insurance company see if you can
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submit report cards and that could give
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you a discount to save even more on your
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car insurance premium there's obviously
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a lot of factors that go into how much
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you'll pay in car insurance that
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includes things like where you live your
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driving history what kind of car you
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drive and then what kind of coverage you
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have is it just liability or is it
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comprehensive so we did a small test to
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take a look at five different states and
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what we did is we looked at a 50 year
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old driver who has a clean driving
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record and what it would look like if we
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added an 18 year old driver to that
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policy here's what we found out so we'll
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start with California without a teen the
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average cost was around $1,300 with the
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teen those costs were dramatically
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different across different insurance
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companies 2700 dollars with Mercury all
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the way up to fifty-seven hundred
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dollars with Geico that is an insane
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difference just by adding a teen to a
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clean driving record with somebody who
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who has a very long history of driving
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that's really a big difference
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now let's take a look at Florida without
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a teen a driver in Florida would be
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paying between seventeen hundred and
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twenty three hundred dollars in car
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insurance premiums and now when you add
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that teen there is a wide difference in
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car insurance premiums across different
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companies we saw forty eight hundred
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dollars with State Farm
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$9,100 with Allstate which is insane and
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thirty five hundred dollars with Geico
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the next one is Pennsylvania without a
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teen you'd be paying around eleven
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hundred dollars with the teen this is
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actually pretty pretty balanced with the
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teen and only added a couple hundred
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dollars in most cases fifteen hundred
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dollars with Geico and then up to
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eighteen hundred dollars with nationwide
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New York without adding a team to your
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policy you're looking at seventeen
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hundred dollars with a teen the jump was
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a little bit more than what we found
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with Pennsylvania you're looking at
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roughly twenty two hundred dollars
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across the three insurance companies we
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looked at then we looked at Texas
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without a teen your car insurance
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premium is $1400 and wizza teen it was
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pretty evenly split
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we saw the lowest with nationwide at
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twenty two hundred dollars up to twenty
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five hundred dollars with State Farm now
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it's pretty clear that states that have
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a lot the large population are going to
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see the biggest discrepancies between
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adding a teen or not having a teen on
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your policy but either way what you can
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do is you compare what a standalone
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policy would look like for if you're a
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teenager what a standalone policy would
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look like versus being added to your
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parent's insurance policy and just
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compare the numbers that is the best way
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to figure out what kind of savings you
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can get and don't be afraid to look
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outside of your current car insurance
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provider if you're a parent just to see
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what it might look like to add your teen
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into that that's the best way that
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you're going to save along with asking
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for driver's ed course and good grades
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discounts now for more information on
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saving on car insurance and more be sure
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to visit the
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College investor calm
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you
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