When your new driver is named on an existing auto insurance policy or obtains his or her own insurance, the company providing the coverage is assuming an additional risk. In order to cover that new risk, there is an additional cost for insuring the young driver.
To determine the appropriate cost of providing coverage to each insured, insurance industry professionals use something called rating factors. Because inexperienced drivers drive differently than experienced drivers, being new to the road is a rating factor. Examples of other rating factors include:
- Make/Model/Year of car
- Miles driven
- Driving record (tickets and accidents)
- Driving experience
Don’t worry – teens will naturally gain the confidence and judgment they need as drivers as they gain experience over time. Until they reach that level, though, there are things you and your teen can do to help maintain their auto insurance rates.
Help keep auto insurance rates as low as possible:
- Keep a clean driving record.
- Drive safe cars that are affordable to insure.
- Consider raising deductible limits.
- If appropriate to your situation, drop coverages such as collision coverage for older cars with relatively low cash values.
Learn more about auto insurance available from BHC Insurance at https://www.bhca.com/auto-insurance/