Insurance for a 17 year old driver is not cheap; there is no way around this. The easiest way to save money on car insurance for 17-year-olds is to add it to your parents’ existing policy, rather than trying to get your own policy.
The averages for these teenage drivers reflect this inexperience and are slightly higher than for most other age groups. Understanding how your insurance premium is calculated for your teen, and learning strategies to help keep your premium as low as possible, can help you choose the best car insurance company for your needs.
Does gender determine car insurance cost?
In addition to age, there is often gender when determining car insurance rates. In general, men pay more for car insurance because men are more likely to take risks when driving vehicles such as speeding and not wearing seat belts. For this reason, men are considered more risky and receive a corresponding fee. However, auto insurance companies in California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania are prohibited from using gender as a factor in ranking premiums.
Can a 17 year old get insurance?
Most states allow 17 year olds to own and insure their own vehicles. However, states often require parents to sign a certificate of consent or otherwise issue a permit before a minor can register a vehicle. Some insurers do not offer insurance to 17-year-olds without a parent’s signature. With permission, a 17-year-old must learn to collect and compare quotes when they receive a car insurance policy. To start comparing car insurance costs in your area, use our valuation tool above.
Why is insurance for a 17 year old more expensive?
For a 17-year-old driver’s insurance company, insurance is a relatively risky business. According to statistics, 17-year-olds are more likely to engage in unsafe driving habits, forcing insurance companies to consider 17-year-old driver insurance as a risky investment. Insurance companies protect their interests from this risk through higher premiums, which leads to higher costs for the consumer. As a result, the average 17-year-old in 2019 paid an annual premium of $ 5,429 for car insurance – much more than the national average of $ 1,548.
In addition, the age of the young driver, the insurance company you choose, your gender, your location and the type of car you drive affect the cost of car insurance. To break down the cost of car insurance for 17-year-olds and the best ways to save (such as collecting a quote), we looked at a number of price factors.
What is the cost of car insurance for a 17 year old?
The average 17-year-old pays $ 5,836 a year for a separate car coverage policy. This amount depends on the type of car your teen is driving, the place of residence and other factors. That’s at least $ 4,000 more than the average 30-year-old driver will pay for car insurance. The website bases these bets on a 100/300/100 policy with a $ 500 deductible on the 2017 Honda Accord.
Why do teenage men pay much more for car insurance than teenage women?
Statistics from the Insurance Institute for Road Safety report that 66 percent of fatal accidents among this age group are caused by teenage boys. Overall, drivers between the ages of 16 and 19 cause about 300 percent more fatal accidents than drivers between the ages of 20 and older. In addition to the risk of disaster, adolescents pay more because they have a lower level of education, are not married and usually do not have a credit history.
What is the cost of car insurance for teenage women?
On average, a teenage woman will pay $2,915 for one-year insurance under a parent’s policy and $5,490 for a separate car insurance policy. For a male adolescent, the average cost of the premium rises to $ 3,243 under the parent policy and $ 6,357 under the independent policy. Zebra reports on these average annual minimum insurance rates for male / adolescent drivers from the five largest auto insurance companies in the United States.
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How to lower premium rates on car insurance for a 17 year old
Limiting insurance coverage for a teenage driver can also lower premium rates. Old car insurance costs much less than buying a policy for a new car model. If you insure a car for less than $ 4,000, it usually makes sense to avoid collisions and comprehensive coverage in favor of minimum liability in your state. The national average for a liability-only policy is $ 672 per year with a high-deductible policy and up to $ 1,427 if you choose a lower deductible.
Encourage your child to read books so that he or she can get a discount for good students. Most companies provide this incentive for high school and college students with a GPA of at least 3.0 if they provide transcripts every 6-12 months, as required by policy documentation.
How to get cheaper car insurance for a 17 year old
· Choose the right car
This is your first car, and given the greater risk of being caught, it makes sense to choose a cheaper model with a smaller engine. Cheap cars are less likely to attract thieves and vandals. Policy providers set insurance premiums for insurance groups of 50. Cars with higher insurance groups are more expensive, so it makes sense to find a model that belongs to the lower group to save money.
· Add experienced person in the name of the driver to your car insurance
A registered car owner is free to add named drivers to his car insurance policy. These will usually be parents or a brother or sister over the age of 25. Insurers are sympathetic to these drivers, as it means that part of your annual mileage will be driven by a more experienced driver. Note that under no circumstances should you be tempted to apply for car insurance using someone else as the primary driver, and you as the named driver if you will be performing the bulk of the driving. This is known as “fronting” and is illegal.
· Use black box insurance to reduce your premium
Telematics insurance or black box insurance policies reward good rides with potentially lower premiums than the average 17-year-old with standard car insurance policies. It includes a device with GPS support, installed in the car, which monitors the speed of braking and movement, as well as where and at what time you go on the road. You agree to limit the number of miles you drive, although you may add some rules for an additional fee.
· Save money with advanced driving qualification
Even a novice driver can take an in-depth driving course, which usually involves several hours of additional training with an approved instructor. Several courses are available, including PassPlus and IAM RoadSmart. In-depth driving courses usually cost between £ 100 and £ 200, but can save you more than the right policy. It is worth noting that some councils offer discounts on the PassPlus course.
· Avoid car modifications
Adding alloy wheels, boosting the engine or improving the body kit can set your car apart from the crowd, but it will inevitably increase your insurance premium as it will be either more powerful or more attractive to thieves. If you are buying a car that has been modified, see if you can cancel or remove any modification, if it is worth it. Run a car insurance comparison site with and without changes to see how it will affect your premium.