It’s a day both exciting and terrifying when your teen is old enough to take the wheel. On the plus side, their newfound independence means you have more time for yourself. Once they have that driver’s license in hand, you can take a step back from car rides to meet friends and attend after-school activities. Having a teen driver in the house can also be helpful if you live in a school district affected by the nationwide bus driver shortages.
The downside — beyond the inevitable increase in your anxiety — is that insuring a teenager to drive may put a strain on your budget. According to The Zebra’s State of Auto Insurance report, the national average for auto insurance policy premiums for 16- to 19-year-olds is $4,573. Broken down into monthly payments that could add over $380 to your expenses.
The good news is that age 16 is really the most expensive year, so you can expect that policy to steadily drop each successive year. Here’s a look at annual auto insurance premiums by age, according to research by The Zebra.1
|16 years old||$5,744|
|17 years old||$4,876|
|18 years old||$4,271|
|19 years old||$3,082|
A big drop occurs at the 20-year-old milestone birthday when the average premium falls to $2,780. While you’re waiting out those pricey teen years though, continue to live in the moment and lower your teen’s premium utilizing these eight tips.