Is It Better to Put a Young Driver on My Insurance or on Their Own?

Teens Are High-Risk Drivers

Teens have been shown to get into more accidents than other groups of drivers. Teens are more likely to engage in risky behavior such as talking on the phone or texting a friend while driving. Statistically, young drivers are an extremely high risk for insurance companies because the odds are in favor of something going wrong while young drivers are gaining experience. Boys are even more of a risk than girls, but both genders are considered a high risk until they reach the age of 25. Purchasing an individual insurance policy for a young driver could cost twice as much as insuring a more mature driver.

To get around the high cost of purchasing an insurance policy for young drivers, they can be listed on someone else's policy. Being added to the policy of a parent or close relative, young drivers will be covered if they are involved in an accident, and the cost to insure them could be hundreds of dollars lower. Make no mistake about it, a young driver will cause your own premiums to go up dramatically, but not as much as purchasing an individual policy.

There are two important aspects of choosing a car for a young driver. The first one includes all of the safety features in the vehicle, including front, side and curtain airbags, electronic stability control and anti-lock brake systems. The second factor is the replacement cost. It is often cheaper to replace an older car than to pay to repair a newer one. If possible, pay cash for a young driver's first car, taking a chance on replacing the vehicle rather than paying the monthly premiums for collision insurance.

Young drivers can get a discount on their insurance by completing a voluntary driver safety course. The course cannot be ordered by a judge or department of motor vehicles, and you need to take the certificate of completion to your insurance agent to get the discount. Young drivers who are still in high school or college can earn a special car insurance discount by maintaining high grades. To qualify, the young driver must maintain at least a 3.0, or B average.