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Monthly Car Insurance for Young Drivers

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The lowdown...
  • A young driver is classified by auto insurance companies as a high-risk youthful operator
  • Since youthful operators have the highest rate of accidents, they are assigned the highest premiums
  • One way to make insurance premiums affordable for young drivers is to set up a monthly auto insurance installment plan
  • If you pay monthly instead of paying in full, you’ll have to pay a fixed installment fee each time you’re billed

If you’re tired of paying too much for auto insurance in adulthood, you’re going to be shocked at how much it’s going to cost your teen driver once they get their license.

Most teens know that auto insurance is expensive, but they don’t really understand the gravity of the cost because their parents pay the premiums.

It’s not until you become a parent yourself that you see why your parents always used to talk about how expensive you were in adolescence.

If your teen wants to drive and you think they’re responsible enough to get their license, you can’t really avoid paying car insurance premiums.

The only thing that you can do is hold them responsible for covering the cost on their own, which means that you need an installment plan.

Car insurance for teens is going to be expensive, but make sure you don’t end up paying more than you need to. Enter your zip code in our free comparison tool to find the best rate.

Here’s what you need to know about young driver insurance:

What should parents tell their teens when they are buying a car?

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If your teen is saving to buy a car, you better remind them that they should save extra money to cover insurance costs.

Budgeting for a car is easy because you can look at sticker prices and easily determine how much car you can afford. Factoring in taxes and titling fees is easy because of calculators that you can find online.

It’s not budgeting the purchase price of a car that’s hard, it’s the fact that many teens overlook how expensive it is to pay for car ownership after you already own the vehicle.

Not only do you have to pay for gas and regular maintenance to keep the car running, you also have to cover the largest recurring expense which is auto insurance.

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How much is car insurance for young drivers?

Auto insurance is a huge expense for any car owner, but especially for car owners who are young or car owners who allow young drivers to operate their cars.

It’s easy to pick out a car based on your budget, but you don’t have as much control over your insurance expense.

Auto insurance premiums fluctuate all the time. You could have a basic compact car and still pay more than your neighbor with a turbocharged luxury car because of your personal information and your coverage.

The price variables are why it’s hard to say how much you’ll pay for car insurance for young drivers.

What are the average premiums for teen car insurance?

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Every insurance company charges a different rate. There are so many different personal factors that influence your rates that it’s not very effective to compare a friend’s premiums to yours.

With this being said, data helps to show how much young drivers pay nationwide and how premium increases vary by state.

How much you’ll pay on average to insure your young driver depends on how they are being insured. Married couples who are adding teens are drivers to their policy pay an average policy increase of 79 percent.

In some states, it costs more to insure teens than it does in others. Here are some of the costliest average increases:

  • New Hampshire – 111%
  • Rhode Island – 107%
  • Maine – 107%
  • Wyoming – 106%
  • Connecticut – 102%
  • Illinois – 101%
  • Oregon – 101%
  • Minnesota – 97%
  • West Virginia – 93%
  • Ohio – 93%

Why are the average premiums so high for young drivers?

There is a long list of reasons why premiums are high for young drivers, even when they are only being added as occasional drivers to existing policies.

One of the main reasons that young drivers nearly double premiums are because they are high-risk drivers.

It’s drivers between 15 and 19 who cause the most injuries in accidents, cause the most damage, and who are involved in the most fatality accidents.

There are a number of reasons why young drivers aren’t in an appealing risk group.

Many say it’s because their brains haven’t matured yet and they are in an age range where they act impulsively. Others say it’s because teen drivers are less experienced and more aggressive.

Can a young drive stay on their parents’ plan for long?

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A minor child can stay on their mom and dad’s insurance after they become an adult as long as they live in the home or they are attending college.

If you move out of your parents’ home and you have your own car, you’ll have to get a separate policy which means your rates will go up even more when you branch out and become more independent.

How can you set up payment installments when you buy auto insurance?

Most teens and young adults don’t make enough money working a part-time job to pay thousands of dollars to an insurance carrier.

You could pay your teen’s premiums for them or you could teach them responsibility and have them pay their own premiums on a schedule by setting up an installment plan.

Almost all of the larger writers of insurance offer installment plans. The most common choice is to pay premiums monthly, but that’s not the only choice.

You’ll have to select which installment plan is best for you based on what’s being offered and how much the payments will be. Here are installment options:

  • Automatic Monthly EFT
  • Manual Monthly
  • Five-Pay Plan Monthly
  • Quarterly
  • Semi-annually

How often you drive, what car you drive, where you drive to, and how long you’ve held your license are all factors that will affect your rates.

Since there are so many personal factors that are considered to set premiums, you have to get several car quotes for young drivers to find a plan that’s priced fairly.

Instead of picking up the phone, use the Internet and you can get multiple quotes from big name insurers any time you want to. Enter your zip code right here to get started.

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