The challenge of insuring teen drivers in Tennessee
Be sure to read this informative post first -- Choosing a car (and affording the insurance) for a teen driver.
There are good reasons that auto insurance for teens is so expensive. Consider these chilling facts from the Centers for Disease Control:
So, it's easy enough to see why auto insurance rates usually double (give or take, depends on many factors) when a teen driver is added -- they are simply far more likely than any other class of drivers to have serious accidents.
This is also the reason that parents need increased liability limits if they have teen drivers. Lower limits are just not enough when you consider that teens often have multiple passengers. And parents may be sued for damages caused by their teens (or early-20 somethings) as long as they live at home or even when they live away, provided they are financially-dependent on the parents. This includes college students in most cases.
We recommend high limits ($500,000) for anyone with teen drivers plus $1 million or more in umbrella coverage. A parent's question may be "Can we afford it?". Our question is -- given the dangers -- "Can you afford not to carry higher limits?". Remember, damage awards are based on the "value" of a deceased or disabled person. What is the potential life "value" of a carload of college students? Almost immeasurable!
We can recommend strategies both for reducing your teen auto insurance costs in Tennessee and for reducing the risk. Reach out to us today at Windrock Insurance; we'd love to help. We'll work hard to balance affordability and coverage for your family and assets.
Here are some excellent teen driving resources for parents and teen drivers:
Teensurance safety & tracking program -- from one our favorite companies, Safeco.
Teen-parent driver contract from Travelers -- an excellent idea that sets parameters and expectations.
Stop texts/stop wrecks -- texting is a huge risk factor for teen drivers.
There are good reasons that auto insurance for teens is so expensive. Consider these chilling facts from the Centers for Disease Control:
- "Motor vehicle crashes are the leading cause of death for U.S. teens.1 In 2010, seven teens ages 16 to 19 died every day from motor vehicle injuries. Per mile driven, teen drivers ages 16 to 19 are three times more likely than drivers aged 20 and older to be in a fatal crash"
- "Young people ages 15-24 represent only 14% of the U.S. population. However, they account for 30% ($19 billion) of the total costs of motor vehicle injuries among males and 28% ($7 billion) of the total costs of motor vehicle injuries among females."
- "The risk of motor vehicle crashes is higher among 16- to 19-year-olds than among any other age group. In fact, per mile driven, teen drivers ages 16 to 19 are three times more likely than drivers aged 20 and older to be in a fatal crash."
So, it's easy enough to see why auto insurance rates usually double (give or take, depends on many factors) when a teen driver is added -- they are simply far more likely than any other class of drivers to have serious accidents.
This is also the reason that parents need increased liability limits if they have teen drivers. Lower limits are just not enough when you consider that teens often have multiple passengers. And parents may be sued for damages caused by their teens (or early-20 somethings) as long as they live at home or even when they live away, provided they are financially-dependent on the parents. This includes college students in most cases.
We recommend high limits ($500,000) for anyone with teen drivers plus $1 million or more in umbrella coverage. A parent's question may be "Can we afford it?". Our question is -- given the dangers -- "Can you afford not to carry higher limits?". Remember, damage awards are based on the "value" of a deceased or disabled person. What is the potential life "value" of a carload of college students? Almost immeasurable!
We can recommend strategies both for reducing your teen auto insurance costs in Tennessee and for reducing the risk. Reach out to us today at Windrock Insurance; we'd love to help. We'll work hard to balance affordability and coverage for your family and assets.
Here are some excellent teen driving resources for parents and teen drivers:
Teensurance safety & tracking program -- from one our favorite companies, Safeco.
Teen-parent driver contract from Travelers -- an excellent idea that sets parameters and expectations.
Stop texts/stop wrecks -- texting is a huge risk factor for teen drivers.
