Your Family & Insurance
Teenagers & Insurance
Insuring a teenage driver can be very expensive. Drivers under 25 pose the greatest risk to insurance companies because of their high level of at-fault accidents. Insurance companies try to limit their exposure by charging higher insurance rates for 16- to 24-year-olds than for any other age group.
What are my options?
You can add your teenager to your existing auto insurance policy once they get their permanent driver's license. Although this can still be an expensive prospect, your teen might be able to take advantage of certain discounts as a driver on your policy (e.g., safe-driver and multiple-car discounts for which you are eligible).
If you drive an expensive vehicle, it will cost even more to add your teen to your policy. In this case, you might want to buy your son his own car (a used economy model, of course) and insure it in his name, rather than add him to your own policy. Older vehicles generally pose less risk to insurance companies, because repairs tend to be less expensive than repairs to newer models. Lower risk for the insurer typically translates into lower insurance premiums for you.
What are my options?
The only way to determine your most cost-effective option is to contact your insurance company and shop around with other companies while you're at it. If you're thinking about purchasing a used car for your teen, be prepared to tell your insurer the make, model, and year of the cars you're considering. This way you can receive accurate insurance quotes. These quotes can help you decide whether to purchase separate insurance for your son or add him to your policy; they may also help you decide which car to purchase, if you go that route. So, get quotes for him as an addition to your policy, as well as for him under his own policy.
Shop Around for Quotes
It is worth looking around at other insurance companies by going online for multiple quotes. You may find that it's less expensive to insure your household drivers with another company, even by several hundreds of dollars.
Please note that this description/explanation is intended only as a guideline.
Original article can be found at Insurance.com: Insuring Teenage Drivers