Your teen comes of age to drive and it is so exciting! But it can also be a little overwhelming. They need to learn everything, anticipate other people’s moves, get a car of your own and then there is insurance. (And we didn’t even mention the amount of worrying you do as a parent!)
First, keep in mind that it will be less expensive for you to add your teen to your existing automobile policy rather than them getting one on their own.
The good news is the difference in premiums will become lower year by year as your teen grows into an older and more experienced driver.
So what is the deal with 25 being the magic age for experience?
Well, that depends on a lot of factors, it doesn’t just happen.
When it comes to auto insurance rates, turning 25 isn’t an automatic rate-reducing scenario. Insurance providers only reward policyholders with lower rates when they avoid accidents and traffic violations, and when they reach milestones that typically signify maturity.
Here at John Scott Insurance Agency we want to help you make sure you are getting the best coverage for your teen driver and the best rate. We are parents ourselves and we completely understand what you are going through!
If your teen avoids accidents and traffic violations from ages 16 to 24, chances are their rate will improve when they turn 25.
So on that 25th birthday make sure you call us and have us take a look at your premium.
Buying a new vehicle can also affect your rates because driving a late-model car will cost more to insure than an older automobile.
While age plays a significant role in car insurance premiums, other factors may impact the rate also, including:
- Where you live
- Your vehicle’s make and model
- How frequently you drive
- Your credit history
- Your gender
- Your marital status
- Your driving record
Each of these factors may increase or decrease your premiums, regardless of your age. For example, a new model year car will cost more to insure than a five-year-old or older model.
If you live in a neighborhood prone to car theft and vandalism, you’ll pay higher rates than drivers in safer areas of town.
If you have poor credit, you can expect to pay a higher insurance rate. If you live behind the wheel, you pay more for auto insurance than your friend who only drives a few miles per day.
Drive safe, avoid accidents, maintain a good credit score and skip the fancy, top of the line, new model year car, and you should enjoy an insurance drop at 25.
If you would like us to review your policy we would be happy to. Just reach out to one of the agents at John Scott Insurance Agency and we will make sure you have the best coverage and the best price for your needs.