Why is it so expensive to add a teenager to a car insurance policy?

I recently added my 16-year-old son to our car insurance and our rate skyrocketed. We normally pay $200 a month and our new rate is $500 a month. We have one financed vehicle with full coverage and one older vehicle with liability only. How can we find a cheaper rate?

“There are many factors that go into car insurance pricing. Some of the biggest factors are age and length of time licensed. As teens are new drivers, insurance companies consider them high-risk and rate policies based on this.
There are many carriers who do offer programs and discounts to offset the rate increase caused by adding a teenager to your policy. Carriers like Nationwide and Allstate offer good student discounts.
There are also good driving behavior discounts, as well as programs that will monitor your driving and provide a discount based on good habits. Teens can also take driver training classes to help reduce rates.
Beyond additional discounts, try comparison shopping. If your current carrier isn’t offering affordable rates, you should consider other carriers. Not every carrier offers the same discounts or has the same rating system. “
Emily Maracle
Answered on Apr 30, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.

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