Insuring a teen driver has its own set of challenges for a variety of reasons. First, teenagers, being new drivers, have little or no driving experience, and as such, are more prone towards being involved with car accidents. Furthermore, male teenagers by nature can be more reckless – particularly when it comes to going over speed limits, which is yet another reason why they are more likely to get into accidents. In fact, teenager drivers are three times more likely to be involved in a car accident and die as a result.

 
Unfortunately, insurance companies are well aware of these facts, and once your teenage son or daughter is included in the policy, this will be reflected in the insurance cost. Amusingly, insurance companies are also factoring in the sex of the teenager: male teenagers included in a policy increase the cost twice as much as female teenagers.

 
How does one reduce these costs to their bare minimum?
 

• First, include your son or daughter in your policy, if possible, as this is bound to be cheaper than getting them their own auto insurance policy. Furthermore, if they have their own car, you can include it as well in your policy (under Multi-Vehicle discount – see our article on auto insurance discounts).
• Second, follow the standard guidelines of reducing costs as outlined in our article Ten Useful Tips For Making Your Car Insurance Cheaper. Most of which will be relevant here as well.
• Third, and this might be hardest one: but Be a Good Parent. This means:
  1. Acting as a positive role model: how would you expect your son to drive responsibly if you don’t?
  2. Explaining to them the dangers of drinking and driving, sleeping while tired, as well as the usage of cell phone usage while driving. Although they are likely to have heard these lectures a million times, coming from you may make the difference.
  3. Supervising them while driving at first: this way, you can see their style of driving as well as potential weaknesses, and you can comment on that. On the upside, if your son or daughter are really good drivers, this may also relieve some potential concerns you may experience.
• Fourth, encourage your son or daughter to get good grades. Many insurance providers give discounts (up to 25%!) to teenagers who maintain high grades (at least a B average), because these are perceived as better future risks.
• Fifth, anticipate potential trouble, so consider raising the liability coverage in your policy. This might be more expensive now, but cheaper in the long run.
• Sixth, encourage your son or daughter to get good grades as well as attend a driving training course. Also notify your insurance provider if your son is a student and is away more than 100 miles from home. These will qualify you to certain discounts (as outline in this article. Note that in this case, it might be a good idea to take them off your insurance completely: if they are not likely to be driving, perhaps the added costs are not worth it.
• Seventh, and this is just common sense: get a car that is considered to be a safe car. Not only this is safer for reckless driver, but will also affect your insurance premium.