Adding a teenage driver to a family policy is the cheapest way to increase coverage, but many families cannot afford this additional coverage. Insurers base teen driver rates on the risk of the car being stolen or damaged, as well as the age and driving record of the individual. According to the National Highway Traffic Safety Administration, 66 percent of car accidents are caused by driver error or lack of experience. While the average teen driver is around twenty years old, the rate can be much higher.
Auto insurance rates vary widely depending on the age of the driver, the model and location of the car, and the driver’s driving record. However, if you’re a young male with no past traffic tickets, a $2,500 auto insurance policy may be normal. Also, it’s not illegal to insure more than one car in the UK. However, claiming full value from two insurers is illegal and is considered fraud. While it’s cheaper to insure just one car, two is also better than one.
Besides the type of car, other factors that influence your rate include the speed of the car, location and make. A sports car, for instance, costs more to insure than a minivan. Depending on your state of residence, this could add up to a large difference in premiums. If you’re driving a luxury vehicle, the cost may be even more. And if you drive an electric car, the battery can be worth several thousand dollars.
