Consumer columnist Kevin Hunt of the Hartford Courant (“The Bottom Line”) recently wrote an informative column comparing how much household car insurance rates go up when a teen driver joins the family’s group of insured drivers. The basic answer — no surprise probably — is 79 percent on average, nationally, with several states averaging an increase of more than 100 percent. The full article is at http://www.courant.com/business/connecticut/hc-bottom-line-teen-car-insurance-20130720,0,634600.column. The column’s cited source is InsuranceQuotes.com.
Hunt explains that rates increase so much due (of course) to the high risks associated with teen driving (although it is interesting to note that teen drivers are generally regarded as having crash rates of three to four times experienced adult drivers, yet the rates at most are double). Also, the column explains that where one lives has big impact, because insurers impose higher rates in locations with “higher traffic density.” Rates in rural areas are somewhat lower, and higher in cities. This all makes sense.
The article goes on to list several things parents can do to reduce their premium sticker shock: good student discounts; having their teen take a defensive driving class, which can be done on-line and for as low as $8; shopping around; long-term policy holder/loyalty discounts; multiple policy discounts; and buying “an older safer model like an SUV, family sedan or midsize car.” This last choice is a trade-off between buying a newer car with more safety features and a bigger car that is more likely to remain intact in a crash. Also, older cars may not need as much collision insurance.
I am all for saving money, but parents: please don’t be misled by any of this. A good student may qualify you for an insurance discount, but academic success has nothing to do with your teen being a safer driver. The same goes for defensive driving classes; don’t be misled into thinking that if an insurer is willing to lower your premium by a few dollars, that it is because your teen is now a safe or safer driver. There is no evidence to support this proposition. Next, note the research, discussed previously on this blog, about the higher risks when teens own or have primary access to a car vs. sharing a car with other family members. The more access a teen has to a car, the higher the risk. Lastly, as between spending more money for a car with more safety features and buying an older car whose collision insurance is lower, this seems like a no -brainer: buy the safest car you can afford. Saving a few bucks on collision insurance is not worth putting your teen at higher risk.
