Auto Insurance for Teenagers

by Cole Humphreys in Auto Insurance at August 18, 2015

Auto insurance for your younger drivers in Grand Prairie, Arlington, Mansfield, Cedar Hill, Dallas and Irving can make you feel like you will go bankrupt. You have spent time and effort budgeting your money and taking care of your kids then one day your teenager turn 16 and asks to drive. Most folks truly want their kids to drive and be independent. The fact of the matte rid that the insurance costs can really limit your ability to create independence for your teenage driver. According to an article in the New York Times, “Eighteen-year-old drivers add an average of 77 percent to the cost of their parents’ auto insurance bills, a new analysis from insuranceQuotes.com found.” 77 percent?! It is sometimes recommended to buy a separate policy for your teenager. This can be argued both ways because of the new policy lacking significant discounts. According to the previous article, the analysts from insuranceQuotes.com say that is cheaper to keep the younger drivers on their parent’s policy. I believe this to be a very broad assessment of the situation as I have found a majority of the time it is cheaper to create a separate policy for the teenager.
Imagine the scenario where I have a fifty thousand dollar pickup truck and my spouse drives a sports car. We believe that we have worked hard and was patient enough to wait on the right vehicle that we wanted. Taking that hard work ethic and patience, we help our teenager to purchase an older used vehicle. The premium on the used vehicle with liability only can be lower than $100/month on up to around $150/month. Can you imagine the premium for that same teenager when going from liability only and adding full coverage on a fifty thousand dollar sports car? We are talking almost triple the amount of premium.
This is why I believe that having an independent agent can help you dramatically. When you sit in a State Farm office (captive agent, one agent and one company) you will get one or two prices and be forced to make a decision. With the independent agent, you can get multiple options from multiple companies that best fit your budget and desired coverage.

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