When the time has come to start insuring your teenagers to drive a vehicle, the cost of vehicle insurance in your household will rise significantly - on average, well over 75%.
This will vary by state, but even at the lowest end of the spectrum you are still looking at a 50%+ increase and boys are a lot more expensive than girls to insure.
Are there ways to reduce the cost?
There are multiple ways to reduce the costs. Read on to save you and your family money:
Is there a type of vehicle insurance that might suit teen drivers better?
You may want to consider a pay-as-you-go insurance policy for you and your teens. To qualify you need a telematic device installed in your car. It monitors speed, braking frequency, mileage driven and the time of day your vehicle is being driven. Safe drivers are rewarded with low premiums. Many modern vehicles already have telematic devices such as OnStar that can be utilized for this insurance.
If not, your insurer will help you install a device that meets their requirements. These can save as much as 50% on regular premiums. You can set up the device so that you can monitor how the vehicle is being driven on your home computer. Being able to monitor you teens can be a reassuring side benefit since vehicular deaths are the most common cause of teen deaths amongst 15 to 19-year-olds in the US today.