Why Does My Teen’s Insurance Cost So Much?   

Car Accidents On Tuesday, December 20, 2022

When a teenager gets his or her driver’s license, the increase in car insurance costs may come as a surprise to parents. Teen drivers are recognized as the most dangerous drivers on the road, with risks such as inexperience, driving under the influence and distracted driving. This translates into higher insurance costs when a teen driver is added to a policy.

Average Cost of Connecticut Teen Driver Insurance

As you may have already discovered, adding a teenage driver to your car insurance policy can significantly increase your rate. In Connecticut, car insurance rates can increase by nearly 80 percent for adding a female teen driver and 92 percent for adding a male teen driver. This is true even if the teen driver has a clean driving record and has not been involved in any accidents.

In Connecticut, the required amounts of auto insurance are 25/50/25: $25,000 in bodily injury insurance per person, $50,000 per accident and $25,000 in property damage liability. Connecticut also requires $25,000 per person and $50,000 per accident in uninsured/underinsured motorist insurance.

Meeting Connecticut’s auto insurance requirements costs an average of about $794 for minimum coverage and $1,845 for full coverage. However, insurance costs depend on various factors that are specific to the driver, such as his or her driving record. The insurance carrier chosen can also affect the cost of coverage. 

When the age of a driver is taken into account, Connecticut’s average insurance amounts increase significantly. The average annual insurance premiums in Connecticut based on age are $2,927 at age 16, $6,666 at age 18 and $4,410 at age 20. These premiums stay inflated until around age 25, when they will start dropping again.

How Are Insurance Premiums Determined?

Insurance rates are determined based on the amount of risk posed by the policyholder. The insurance company wants to minimize its own financial risk when it agrees to cover a driver. This means the carrier will charge more if there are higher odds of the driver getting into an accident, such as a driver who lives in a city with a high crash rate or a younger driver.

Teenage drivers are a well-known crash risk. Teen drivers are new to the road and do not have a great deal of experience. They are also more inclined toward risky driving behaviors, such as texting while driving, driving without a seat belt and distracted driving. According to the Centers for Disease Control and Prevention, the risk of motor vehicle accidents is highest among teens ages 16 to 19. Per vehicle mile driven, teens in this age group have a fatal crash rate that is almost three times as high as drivers ages 20 and older.

Car insurance companies recognize the crash risks posed by young drivers. To counteract this risk, insurers charge higher premiums for newly licensed teens. Insurance carriers are protecting themselves by recognizing the high risk of a collision and preparing ahead of time by requiring the client to pay higher costs for coverage. Unfortunately, this can mean a rather large insurance jump as the parent of a teen driver.

What Can You Do to Lower Your Insurance Bill? 

Your insurance rates are guaranteed to increase when you add a teen driver to your policy in Connecticut. However, you and your teen may be able to save on auto insurance with a few tips: 

  • Take a driving class. Tell your teen to enroll in a defensive driving course to receive a discount of around 5 percent on car insurance rates.
  • Take advantage of other discount opportunities. For example, some insurers offer discounts to student drivers for good grades.
  • Bundle your coverage. Combining your home and vehicle insurance can lead to steep discounts from your provider.

Shop around at different car insurance companies to search for the lowest rate. Consider choosing a carrier that offers accident forgiveness in case your teen gets into a fender-bender. If your teen is involved in a car accident, consult with a New Haven accident attorney for advice.

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