Earning a driver's license is a right of passage for many teens. New drivers are excited to start driving after passing their road exam. But the parents are likely anxious about having their teen on the road, and the impact this will have on their insurance bill.
Teen drivers are much more likely to be involved in an accident than drivers in any other age group. In fact, the crash rate for 16 - 19-year-olds is nearly four times the rate of drivers 20+ years old. While only making up 3.6% of all licensed drivers, teen drivers account for 9.3% of all crashes. These drivers tend to overestimate their own driving skills while underestimating the dangers of the road.
As drivers gain more experience on the roads, the crash rate decreases.
A driver with more than six years of driving experience will likely have significantly lower insurance costs than someone who is recently licensed. Driver age doesn’t have as significant of an impact on insurance rates as driving experience. For example, a 35-year-old driver who was first licensed at 32 will likely have higher insurance costs than a 25-year-old driver who was first licensed at 17.
Massachusetts drivers are considered to be ‘Experienced Operators’ after six years of driving experience. Once a driver achieves this, they can expect lower car insurance costs.
Accidents and moving violations, such as speeding tickets, have a significant impact on insurance ratings for a given driver. Not all infractions are created equal. The type and severity of a given accident or violation will influence the effect on a driver’s insurance rates.
As teen drivers are more likely to be involved in a crash, they are more likely to have one or more accidents on their driving record.
Choosing the right vehicle for a teen or new driver can provide additional security and safety in the event of an accident. Newer vehicles featuring modern safety systems, vehicles with excellent crash test ratings, and larger vehicles tend to offer the best protection. The Insurance Institute for Highway Safety recommends avoiding high-horsepower models for young drivers, who could be encouraged to speed.
Vehicle choice can certainly have an impact on the cost of insurance. Vehicle safety ratings, average repair cost, and vehicle weight are just some of the vehicle attributes that can impact insurance costs. If you’re reviewing potential vehicles for your teen driver and are curious about insurance costs, consult with a licensed Massachusetts insurance agent.
Adding a newly licensed driver to your car insurance will increase the cost of the policy, so why add them?
If the new driver is not added to the insurance policy, you risk having future car insurance claims denied. Massachusetts auto policies require that all licensed household members, along with any individual who regularly uses, must be listed on the policy. Policyholders must notify their insurance agent or car insurance company of any changes to the makeup of their household.
It’s not worth the risk.
The leading causes of fatal teen crashes are well-studied. Massachusetts has adopted graduated driver licensing (GDL), which helps teen drivers develop skills and experience before receiving an unrestricted license. Let’s explore some of the biggest risk factors that lead to crashes for teen drivers.
We’ve all seen other drivers using their smartphones while driving – you may even be guilty of doing so occasionally. Due to inexperience, distracted driving is an especially high risk for teen drivers. In 2019, 39% of licensed high school students texted or emailed at least once during the prior 30 days.
Teenagers are likelier than experienced drivers to speed and closely follow other vehicles, which can create an extremely dangerous situation. In 2020, 35% of teen male drivers and 18% of teen female drivers were speeding when involved in a fatal crash.
Drinking alcohol can significantly impair a driver’s ability to identify and avoid risks on the road. Teens increase their crash risk by drinking any amount of alcohol before driving. Teen drivers have a much higher risk of being involved in a crash than older drivers at the same blood alcohol concentration, even when the levels are below the legal limit for adults.
Drinking and driving can have dire consequences. In 2020, 29% of teen drivers killed in motor vehicle crashes had been drinking. 62% of drivers killed in motor vehicle accidents after drinking and driving were not wearing a seat belt.
In 2009, 43% of US high school students responded that they did not always wear a seat belt when riding as a passenger in a vehicle. In 2020, 56% of all teen drivers and passengers killed in a car crash were not wearing a seat belt at the time of the accident.
Nighttime driving is riskier than daytime driving for all age groups. However, it is particularly dangerous for teen drivers. The rate of fatal nighttime crashes is roughly three times higher per mile driven than that of drivers aged 30-59 years.
Adding a teen driver to an existing car insurance policy can triple or even quadruple the insurance cost. But it doesn’t have to be this way. Let’s review some strategies for reducing the impact of adding a newly licensed driver to your policy.
There may be discounts available on your policy that are specifically designed for households with young drivers.
The Good Student Discount is a great reason to encourage your young driver to maintain good grades in school. It can be applied to most high school and undergraduate students who maintain a GPA of 3.0. This discount can not be applied to any driver who is already benefitting from the Student Away At School Discount.
College students attending a school 50+ miles from home will likely qualify for the Student Away At School Discount. This discount can not be applied to any driver who is already benefitting from the Good Student Discount.
In addition to a policy discount, telematics can help provide feedback on teen driving behaviors. Various driving behaviors are tracked using a smartphone application or a small plug-in device. These may include phone usage while driving, acceleration rate, hard braking, miles driven, and driving time of day. Parents of teen drivers can usually also access the driving data captured by the telematics program.
Most telematics programs initially provide a small discount to the policy, with the potential for a greater discount if the driver displays safe driving habits.
Insurance providers offer many different forms of discounts. To determine which discounts you may be eligible for, consult with a licensed Massachusetts insurance agent. Let’s review some common discounts that may help you save on your insurance bill.
Bundling a car insurance policy with a home or renters policy can help you save as much as 15% on your auto insurance. This can be combined with other insurance policies, too, including motorcycle insurance, RV insurance, boat insurance, and umbrella insurance.
If multiple vehicles are in the household insurance on separate policies, you may miss out on significant savings by combining the cars into a single policy.
If you currently pay by mail or online, you can likely save on your car insurance costs by switching to an automatic bill plan. You can save even more by selecting a one-pay billing plan.
You may be eligible for a discount through various group affiliations, such as your employer or a car club membership.
You can save 3 - 5% on your insurance bill by receiving billing statements and policy documents in your email inbox rather than your mailbox.
Adding a teen driver to the policy is a significant change. You may find that some insurance providers offer more competitive pricing for your updated policy. As your insurance needs change, it may be beneficial to change your insurance provider. Or, at the very least, explore additional options.
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Teen drivers are more likely to be involved in accidents due to their inexperience, leading to higher insurance costs. Statistics show that the crash rate for 16-19-year-olds is nearly four times that of drivers aged 20 and older.
Yes, driving experience significantly impacts insurance rates. For example, a 35-year-old driver licensed at 32 will likely have higher insurance costs than a 25-year-old driver licensed at 17.
Parents should choose vehicles with modern safety systems, excellent crash test ratings, and larger sizes. To discourage speeding, it is also recommended that high-horsepower models be avoided.
Including a newly licensed driver on your policy is essential to avoid having future claims denied. Massachusetts auto policies require all licensed household members to be listed on the policy.
Major risk factors for teen drivers include distracted driving, speeding, drinking alcohol, not wearing seat belts, and driving at night.
Parents can save by taking advantage of discounts like the Good Student Discount, Student Away At School Discount, telematics programs, and various other car insurance discounts.
The Good Student Discount applies to high school and undergraduate students maintaining a GPA of 3.0 or higher. It encourages academic performance and helps reduce insurance costs.
This discount applies to college students attending school more than 50 miles from home. It cannot be combined with the Good Student Discount.
Telematics programs track driving behaviors using a smartphone app or a plug-in device, providing feedback on safe driving habits and potentially offering discounts for responsible driving.
Families should shop around and compare insurance providers, as some may offer more competitive pricing for policies that include teen drivers. Consulting with a licensed Massachusetts insurance agent can help identify potential savings and discounts.
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