Car Buying For Teenagers & Insurance

Your teenager has finally gotten their driver license and it’s time to get them their own wheels. Having your child reach this milestone can be exciting but also terrifying, because you know your child will now be behind the wheel on their own for the first time.

With their driver license comes the need to purchase them a car. Whether you are just passing down the family vehicle to you kid or buying them a new or used car, it’s time to think about several things:

–          How much auto insurance will cost you to include your child on your policy?

–          Is it better for them to have their own policy?

–          Is their new car safe for them?

–          Can they afford the insurance and car payment?

Cost of Auto Insurance:

Auto insurance for teenagers is much higher than the same policy for an adult. Some of the reasons is their driving inexperience and likelihood of distracted driving. New drivers are also more likely to be in a car accident resulting in higher insurance rates.

One way to save money is to add your child to your own policy. Depending on the vehicles you have insured, adding your teenage child can increase your premium since your child is insured on all vehicles that are on your policy. If you have a new vehicle on your policy that increase can be even higher.

Have Their Own Insurance Policy:

This could be a better idea if you are planning to give your child an older vehicle on which you just want to keep liability coverage, especially if your own policy has newer vehicles that your child will not drive, so there is no need to include them as drivers. They can use the older vehicle to gain driving experience and save money on insurance at the same time.

What About Safety of the Car?

Every parent wants to provide the safest vehicle for their child, which usually means getting a larger vehicle for them. New drivers can run into other issues while driving a larger vehicle, like being unfamiliar with the much bigger size of the vehicle, navigating smaller spaces in parking lots or parking garages. Insurance companies view the first three years of driving experience as kind of a probation period. If you can manage those years without any tickets or accidents, you’ll enjoy better rates later.

Cost of Car Insurance and Car Payment:

If you’ve decided to purchase a newer car as your child’s first vehicle. Many parents will finance the said vehicle and with that you need to purchase a comprehensive and collision insurance. Your lender will require that as part of you loan and you must maintain insurance for the duration of the loan, since the lender owns it until the loan is paid off.

Comprehensive and collision insurance rates have much bigger impact on young drivers than more experienced drivers and they can easily run over $300 a month or more depending on the vehicle you buy. Adding that to a car payment and you can see how this monthly cost can bust a budget of a young person still going to school or just starting a career.

Obviously, sport cars will be more expensive for young drivers to insure and it’s best to avoid any fast coupes.

Bargain Insurance Connection is here to help you with navigating the auto insurance market and provide affordable car insurance young drivers.

Give us a call today for a free auto insurance quote at 816.453.7722 or submit our online quote.