Buying Car Insurance For A Teenager
… and how to save money
Car insurance for a teenager is so expensive… but it doesn’t have to be… quite as expensive.
If you’d like to lower your teenage driver’s car insurance rates you need to understand why their rates are so high in the first place.
Like most people, you probably assume teenage car insurance rates are so high because they’re young. That’s actually false. Young person car insurance is expensive because they are newly licensed and inexperienced. A newly licensed 16 year old will have the same high car insurance rates as a newly licensed 40 year old.
So what’s the trick to save money when buying car insurance for a teenager?
Well, this really only works for parents who don’t plan on letting their teens drive till they are 18 or 19… have them get their driver’s license at 16 and then just wait till their 18th or 19th birthday to let them start actively driving.
Why do this? Because you’ll start the clock on ‘driving experience’. Once a newly licensed driver gets to three years of driving experience, their rates start to come down. Their rates will continue to come down as the years go by and the amount of driving experience continues to increase.
The CA DMV requires a bit more to get a 16 year old licensed; such as them having to complete 50 hours of behind-the-wheel training; however, if you don’t push them to complete it as soon as possible, you’ll literally be paying for it.
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