Blog by Erie Insurance
Getting a driver’s license is a milestone for teenagers, but it can also mark the start of their most dangerous years on the road. Safety is important to you. We understand and want to provide you with the best auto insurance coverage to help protect your family.
INSURING A YOUNG DRIVER
Do you know a teenager who will be behind the wheel soon? It’s an exciting (and nerve-racking) experience to help teens get the training that they need to become safe, responsible drivers.
One of the first things that you’ll want to do is to check on the driving laws in your state. All 50 states and the District of Columbia have graduated driver licensing laws to help teens gradually build up driving experience in a low-risk way.
We offer great protection with auto insurance coverage for the whole family. Your local agent will add a young driver with a learner’s permit to your family’s auto policy. This simple step helps ensure that we have the information that we need in case the novice driver is in an accident. Once the young driver passes the driving test, ask your agent about your coverage and costs. Any time you add a licensed driver to your policy, your insurance rates will be adjusted.
INSURANCE COSTS
One of the primary reasons why teen drivers tend to have higher insurance rates than other drivers is because of the number of accidents teens are involved in. Every year, studies show that young drivers between the ages of 16 and 19 are involved in more accidents than other age groups. Insurance companies need to balance rates with the cost to cover claims.
Insurance costs will gradually lower with each successive year a young driver gains experience without any traffic violations or accidents. At age 24, with the next policy renewal, their rates with Erie Insurance will lower from a young driver to an adult. (In North Carolina, driving experience factors gradually decrease until the driver gains eight years of experience).
DISCOUNTS FOR YOUNG DRIVERS
To help offset the costs, some discounts offer young drivers a discount between 5 and 20 percent.
Young drivers may qualify for:
- Youthful Driver Discount – Unmarried drivers under 21 who reside with their parents.
- Youthful Longevity Discount – Unmarried young drivers may receive a credit for the consecutive years spent insured under another auto policy (usually a parent’s or guardian’s policy).
- Driver Training Discount – Young drivers under age 21 who have completed an accredited driver training course.
There’s also another way to save on insurance costs: college student discount. If your son or daughter is living away from home while attending school and does not have access to a car, let your insurance agent know. You may receive a discount for the time that he or she isn’t driving the car.