How could insurance cost that much to add a teen driver?

 I just want a quote for my 16 yr old. I want my 16 year old on their own policy so it doesn’t affect the rest of the household as much.” 

You can’t do that!

If you read your auto policy (really, who does that?), I mean if you talk with your insurance advisor (I hope you have one, because you really need one), he/she will explain to you that your auto policy will stipulate that you need to list all drivers in your household on your auto policy, and pay the appropriate rate for them.

What did we do?

Well, I said “look, if you’re happy where you are, then simply understand that this is one of the many costs you have paid, and will continue to pay for having a beautiful son.”

If you want to shop around, I think you should.

The first priority is to make sure you have the appropriate coverages to protect against the risks you have. Having a 16 year old  driving on the roads is a pretty big risk (hence the steep price), so don’t reduce your coverage to get a better price. Having the proper coverage is the 1st priority.

The 2nd priority is to get the best price you can for that coverage.

So shop around and see what the market is providing.

Are you paying too much?

If you have a new driver in your household, please remember that there’s a reason insurance companies rate so much for young drivers. They are a higher risk because they cause more accidents.

Your first priority is to make sure you have the right coverages. Don’t lower your liability limits and expose yourself to a greater risk because you want to save a few bucks. It’s not worth it in the long run. In fact, from a risk standpoint, you should probably raise your liability limits because there’s a greater chance you’re going to need them.

Your next priority is to not pay more for your protection than you need to. Work with your insurance advisor (who should be an independent agent) and make sure you’re getting the best value for your insurance dollar.