KSL INVESTIGATES

Gephardt: The high cost of insuring teen drivers; what parents can do

Apr 9, 2021, 10:15 PM | Updated: Oct 12, 2022, 1:00 pm

SALT LAKE CITY, Utah — If you have a teenager in your house, you probably know all too well how they are just itching to drive. While that is hard enough on your nerves, insuring a teen driver will certainly be hard on your wallet, but there are some things parents can do to keep the damage to their budget from being declared a total loss.

“In Utah, specifically, adding a 16-year-old driver costs a family of three about $5,600 per year,” said Andrew Hurst, a data writer with personal finance website, LendingTree.

LendingTree recently crunched the numbers on insurance rate data around the country and found the cost of adding a teen to a policy costs a combined total of $33,091 for a third driver from age 16, until he or she reaches age 22.

“The reason teen drivers are higher is because the insurer is expecting them to not be as experienced behind the wheel and thus make poor decisions,” said Hurst. “Teenage drivers are usually viewed as more impulsive.”

Teens often can struggle judging the gaps in traffic, going the right speed for conditions and turning safely.

“They might make any range of bad decisions,” said Hurst. “Insurers kind of price that into the premium for teenage drivers.”

Hurst said there are ways to lower the cost.

Taking a defensive driving course helps, as well, if your teen keeps their grades above a B average. That will earn them a good student discount, which averages 6.3% in Utah, according to Hurst.

He said, in general, it is cheaper to add your teen to your existing policy, rather than buy a separate policy, and you should compare quotes from several different carriers.

“You can find lower rates for a family of three, or even for an individual teenage driver,” Hurst insisted. “It’s just about the sort of time you put into shopping around.”

Rates do ease each year as your teen gains experience. LendingTree’s study found the average annual rate in Utah will drop from $5,600 at age 16 down to $3,600 by the time your child reaches age 24.

Now, insurers will reward parents that give their children a safe car to drive and not just an old, beater that’s cheap to insure. Hurst said to make sure it’s got functioning air bags, anti-lock brakes, seatbelt alarms and power steering to maximize those insurance discounts.

KSL 5 TV Live

Top Stories

KSL Investigates

...
Matt Gephardt

Get Gephardt: How do you know if your donation really gets to those who need it?

Fundraising runs rampant on social media, but how do you know if your donation really gets to those who need it?
2 days ago
After a contractor got paid, customers say he stopped responding and walked off the job. (KSL TV)...
Matt Gephardt and Cindy St. Clair

Felony charges for contractor accused of ripping off several Utahns

After a contractor got paid, customers say he stopped responding and walked off the job. A Get Gephardt investigation found this particular contractor has walked off so many jobs it could land him behind bars.
3 days ago
Christopher Browning in court....
Daniella Rivera & Keira Farrimond

Police were warned rapist could reoffend 24 years ago. Now he’s charged again.

A convicted rapist paroled in December faced a Utah judge today on 10 new felony charges including aggravated sexual assault and kidnapping.
4 days ago
...
Matt Gephardt and Cindy St. Clair

After new homes flood, residents question if builder or Mother Nature is to blame

Several new homes in a Lehi community flooded during rainstorms earlier this month. When they say the home builder told them they weren’t responsible, they decided to Get Gephardt to investigate.
5 days ago
...
Matt Gephardt

Get Gephardt: The ‘most used’ photos to catfish victims in romance scams

KSL Investigator Matt Gephardt shows us some of the most widely used photos in romance scams and how we can protect ourselves.
6 days ago
Americans are using their credit cards more often as the economy opens....
Matt Gephardt

Gephardt Busts Inflation: The key to saving money on your credit card bills

More Utahns are carrying debt, but the thing is – many of those folks have no idea how much interest they are paying on their debt.
10 days ago

Sponsored Articles

vintage photo of lighting showroom featuring chandeliers, lamps, wall lights and mirrors...
Lighting Design

History of Lighting Design | Over 25 Years of Providing Utah With the Latest Trends and Styles

Read about the history of Lighting Design, a family-owned and operated business that paved the way for the lighting industry in Utah.
Fiber Optical cables connected to an optic ports and Network cables connected to ethernet ports...
Brian Huston, CE and Anthony Perkins, BICSI

Why Every Business Needs a Structured Cabling System

A structured cabling system benefits businesses by giving you faster processing speeds and making your network more efficient and reliable.
notebook with password notes highlighted...
PC Laptops

How to Create Strong Passwords You Can Actually Remember

Learn how you can create strong passwords that are actually easy to remember! In a short time you can create new ones in seconds.
house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 Reasons You May Want to Consider Apartment Life Over Owning a Home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to Choose What MBA Program is Right for You: Take this Quiz Before You Apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Gephardt: The high cost of insuring teen drivers; what parents can do