As parents know all too well, teen drivers tend to be riskier on the road, which means they’re more expensive to insure. The experts at Consumer Reports reveal tips to help families choose the right car and make smart insurance choices that could save thousands of dollars each year.
For now, Jordan Hinckson is just getting a feel for the road with Mom by his side. His mom, Mio Garcia-Hinckson is preparing her teen for the road and says, “Ideally, the car for him would be bubble wrapped, but in the real world, I would just want something that’s safe.”
The type of car matters, because teens have crash rates nearly four times those of drivers 20 years and older. And car crashes are the leading cause of death for ages 15-24. Choosing the right vehicle is critical. CR says you want to choose a car that isn’t too small, and too fast, not only is it going to be cheaper to insure but it’s also going to give that teen driver a better sense of speed.
CR and the Insurance Institute for Highway Safety identified more than 50 used cars under $20,000 that have performance and features designed to keep young drivers out of a crash but that also have high levels of crash protection if the worst does occur.
On the list are popular picks like the Honda Civic, Toyota Corolla, and Hyundai Tucson. But finding the right car is only half the challenge. Insuring your teen can be pricey, premiums can run much higher than for experienced drivers. One common question is should you put your teen on a separate plan? In general no, putting your kid in a separate plan will cost more money. You should shop around. As CR found, and as they find repeatedly, loyalty doesn’t pay. Insurance companies want to attract you with lower rates.
CR found that the median savings for policyholders who switched insurers recently was $461 on their annual premium. And as for coverage, it may be tempting to cut back on collision or comprehensive to save money. But CR says never skimp on liability insurance even if it does save you money on your premium. The right car and coverage can go a long way toward protecting teen drivers.
Depending on the value of your home and other assets, you may also want to ask about an umbrella policy. It’s extra liability coverage that goes beyond the limits of your auto and homeowners insurance.