For parents who want to provide the best possible life for their children, one of the big milestones is buying that first car. There are many expenses that parents must prepare for when their child reaches driving age. There is, of course, the vehicle itself, which can carry a significant cost. Insurance is a big concern, too. How much can you expect to pay in auto insurance for a 17-year-old boy? That depends on a few factors, but you should expect the insurance cost to be somewhat higher. Teenage boys are the highest risk category for insurance providers, so they charge high premiums to cover this risk.
Understanding the factors that drive insurance prices
Insurance premiums are mostly a function of risk. Companies come up with risk profiles based upon a number of factors, including driving history and historical statistics about a given type of driver. Teenage boys are unarguably the riskiest drivers for a host of reasons. First, they are inexperienced when it comes to being behind the wheel. On top of that, they are predisposed toward aggression and impulsive behavior. These factors make it likely that a teenage boy will at some point make a mistake while they are behind the wheel. Insurance companies have to account for this.
Factors that can reduce insurance costs for teenage boys
Some parents urge their children to do everything possible to lessen that risk profile. In trying to market to these parents, some insurance companies have gotten creative in their approach. Some, for instance, will offer a discounted rate if the young person happens to pass a driver safety course. In addition, there are insurance companies that give discounts for drivers with good grades. The idea there is that young people who make good grades can be trusted to make better decisions in the car.
Getting an insurance policy specifically for a child
While estimates of the cost of insurance for a 17-year-old boy can vary depending on the company and where you look, you can expect to pay around $300 to $500 per month for this coverage if you get an insurance policy in the child’s name. Insurance providers tend to protect themselves in these instances, and if you are not attached to your child’s policy, the insurance provider also carries some risk that the child will stop paying the premium at some point in time.
Adding a child to a parent’s policy
The more popular way to handle car insurance is to add the young driver to the parent’s car insurance policy. This can save parents significant amounts of money. Depending on where the parent lives, adding a child to a policy will only increase the premium by a few hundred dollars per month on average. You can expect to pay more for this coverage if you happen to live in a city or a place where there are many wrecks. Those in rural or lowly populated areas will experience significant savings when adding teenage drivers to their policies.