In 2022, I paid $3700/yr to insure 3 cars. After adding a teen driver in 2023, it ballooned to $8200. And then to $20,000/yr. I finally switched providers and got it down to $12,000/yr.
I’m paying $5500/yr just for my son’s iX…I know it’s high because he’s a teen and it’s an EV.
I was originally told that if a teen had a clean driving record, we would see a pretty big drop in premiums every six months. However, my insurance has actually skyrocketed (I know all insurance premiums increased this year). I’m trying to gauge how much should premiums for teens normally drop and when. After a year? After they turn 18? 10%? 20%?
State Farm told us it isn’t so much the age of the kid, but it is the total years of driving experience/licensure that matters as to when it goes down.
I’m actually with State Farm now and they can’t give any definitive guidelines as UW handles pricing. I’m more asking for info based on people’s experiences.
Maybe they don’t count the time when he had a provisional license and only start the clock when he got his full license. If you have experience, when you did see the first reduction for a clean driving record, how much was the reduction? 10%, 20%, 30%?
Provisional license did not count from what I was told.
3 years (19) and 5 years (21 if still in school, under 24 at the same address, etc.) made big differences and each year it went down a little bit but those are the big drops from what I was told.
Huh? Doesn’t make sense. There is a high correlation between age and years of driving experience/licensure. It’s been several years since I did loss reserving and claims analysis. At that time, premiums for single male drivers dropped significantly at age 25 as long as they had no history claims for or against and no speeding tickets.
Can you elaborate? You have your own car and your own policy. Your parents don’t put you on their policy. When we inquire to do this, my broker said it’s cheaper to add my son to my policy instead of him having his own policy.
Same here. I had my own liability insurance on my 1978 Datsun B210. I think I was paying pretty close to $100 month or half of what I made from my part time job landscaping, cutting and netting Christmas trees, etc. My parents didn’t want to put me on their policy because it was too much.
This is probably true if you include comprehensive coverage, but if you have a junker like I had as a teen, you just need liability.
The only car in our policy which have collission coverage is the eqb. All other car has liability only. Even then, the broker said it’s still cheaper to put my son on our policy instead of his having his own policy.
In our house getting your license meant paying the additional cost of insurance as an additional driver until you bought your own car and got your own policy, which I did. Same here that I tracked it closely and the renewal around 24 was when the slope finally turned.
OP’s biggest problem here is the teen driver with full coverage on a vehicle with a $90k+ replacement value that (by their age and driving experience) will very likely merit at least one claim.
