Unfortunately, it can be more difficult to obtain auto insurance for teens after an accident. While most drivers will experience a rate increase after an at-fault accident, teen drivers are already considered to be high-risk, so they tend to experience the largest changes in rates.
Thankfully, our experts have reviewed the nation’s best car insurance providers and created this helpful guide for your reference. In it, we detail which insurers offer the best rates and discounts for teen drivers, even if they have been involved in an accident.
If you would like to skip ahead and start comparing car insurance rates now, check out our rate finder below. Within seconds, you can obtain free quotes from top companies like USAA, State Farm, Allstate and Geico.
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How Much is Auto Insurance for Teens After an Accident?
Auto insurance companies set rates based on risk assessments. Each company weighs the odds that a driver will be involved in an accident in order to ensure that the business can still make money on a policy.
Teen drivers are already considered to be extremely risky to cover for several reasons, such as:
- Unproven driving habits
- Lack of seat belt usage
- Late night and weekend driving
- Texting or distracted driving
- Underage drinking
- Excessive speed
As you can see, there are numerous risk factors that come into play when insuring teen drivers. When a teen has been involved in an at-fault crash, the incident reaffirms insurance providers’ concerns. This is why even a single incident can result in substantial rate increases for teenagers.
In some cases, auto insurance for teens after an accident can double in cost. However, insurance providers examine the specific factors surrounding each teen’s crash.
For instance, a driver that scratches another vehicle in a parking lot will not experience a substantial rate increase. On the other hand, a teen that is involved in an at-fault crash that involves alcohol will be difficult to insure.
What Else Can Make Auto Insurance Rates Go Up?
While crashes are certainly responsible for many teen driver rate increases, they are not the only factor that you should consider. Keep reading to explore other criteria that will influence insurance rates for teens.
Loss of Discounts
Some insurance providers offer teen-specific discounts for having good attendance or grades. Insurance companies view making good grades as a sign of maturity. However, if your teen’s grades suddenly drop, rates may rise.
Another discount that you may lose as your teen gets older is a multi-car discount. Also important to note is that if your young adult moves out of the house, they may need to seek out their own policy. This means that your teen will likely have to pay more for auto coverage.
However, this is good news for you as a parent or guardian, as your overall premium cost may decrease once you remove a “high-risk” driver from your policy.
Generally, teen drivers are lumped into a single, high-risk category. However, a teen driver that obtained their license at the age of 16 and maintains a clean driving record until they turn 18 might be eligible for rate decreases. This is because they have gained some driving experience and have exhibited a certain level of responsibility behind the wheel.
Additional Factors That Impact Teen Car Insurance Cost
There are some lesser-known factors that will impact the cost of auto insurance for teens after an accident. For example, your insurance company may consider the policyholder’s credit score when setting new rates. It will also take into account the type of vehicle your teen drives most frequently. Vehicles with modern safety features might be cheaper to insure than older cars.
In addition, your teen might be eligible to take a defensive driving or safety course to offset a portion of the penalty for being involved in an accident.
You may also want to increase your deductible amount to obtain lower insurance premiums. Speak with your insurance agent if your teen was involved in an accident, as they can often help you find ways to lower your rates.
Why is Car Insurance So Expensive for Teen Drivers?
The main reason that car insurance is so expensive for teen drivers is that they have a high propensity for being involved in crashes. In fact, motor vehicle crashes are the second leading cause of death for U.S. teens. According to the CDC, over a quarter million teens aged 13 to 19 were treated in emergency departments for motor vehicle crash-related injuries in 2019. Nearly another 2,400 died that very same year.
Male drivers ages 16 to 19 are considered to be at the highest risk for being involved in a serious accident. In fact, they are twice as likely to die in a motor vehicle crash as females of the same age.
Another extremely risky demographic is teens that drive with teen passengers. The CDC states that the risk of being involved in a crash increases with each additional teenage passenger present in the vehicle.
Newly licensed teens are also at an elevated risk of being involved in a traffic crash. According to a National Household Travel Survey, newly licensed 16-year-olds crash one-and-a-half times as frequently as 18- and 19-year-old drivers.
Final Thoughts: Auto Insurance for Teens After an Accident
While insuring young drivers is expensive to begin with, finding auto insurance for teens after an accident is even more costly. This is due to the unique risk factors facing teen drivers, including inexperience, immaturity and the potential for external distractions.
The best way to keep your insurance rates low is to teach your teen good driving habits and take advantage of any local driving courses.
If your teen has already been involved in an at-fault accident, there is still hope for finding an affordable insurance policy. However, doing so will take a bit of research and will require you to leverage any discounts offered by insurers. Shop around and compare multiple auto insurance quotes before settling on a new policy.
Our Recommendations for Auto Insurance
Now that you have a better understanding of the challenges of obtaining auto insurance for teens after an accident, the next step is to conduct additional research. If you would like to review several auto insurance quotes in one place, check out our free rate comparison tool below.
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State Farm: Best for Student Drivers
During our industry-wide review, we awarded State Farm the title of Best for Student Drivers. The company earned an overall score of 8.9 out of 10.0.
State Farm offers numerous discounts for teen drivers, including price reductions for having good grades and practicing safe driving habits. In order to qualify for both discounts, your teen must maintain a B average and avoid any at-fault accidents involving property damage.
If your teenage driver has been involved in an accident, State Farm may be willing to provide affordable coverage, even if some other major insurers are not. The company also offers accident forgiveness.
GEICO: Best Overall
GEICO has been providing its clients with great auto coverage for decades. In our review, our experts named the company the Best Overall insurance provider.
Like State Farm, GEICO offers a wide array of ways to save money, such as good driver discounts. However, it does not offer a good student discount. GEICO does have mechanical breakdown coverage, which is a great way to protect your teen from unexpected auto repair bills.
The Detroit Bureau collects data from every major car insurance provider to formulate rankings of the best insurers. Our in-depth rating system takes into account market share, coverage, pricing, customer satisfaction and ratings from industry experts. Each insurer is given a weighted score in four categories, as well as an overall score out of 10.0.
We recommend auto insurance companies based on these rankings, but we also encourage you to perform your own research and compare quotes to find the best coverage.