How Does a Teenage Driver Affect My Car Insurance? 

While higher rates are unavoidable, understanding why insurance companies charge more for teenage drivers and what steps you can take to manage those costs can help you make informed decisions for both your family's budget and your teen's safety.

Why Talking to Your Teen About Driver Safety Can Be a Challenge:

Have you ever tried to get a square peg into a round hole?  It can seem impossible.  That is how it can feel when you're trying to get your teenager to listen, especially when it is something important.

The truth is, though teens can seem tough to teach, that doesn't always mean they don't hear you.  Studies show that teenagers do actually listen to their parents, teachers and other role models.  They just don't like to admit it.

Why Talking to Your Teen About Driver Safety is Critical:

As the saying goes, little kids have little problems while big kids have big problems.  You see this as your child grows from playing with a toy car to driving a real one. To keep your teenager safe, you both need to be on the same page about the expectations and limits of your teen driving on their own or with friends.  Here are some reasons why:

• Motor vehicle crashes are the leading cause of death for teenagers.
• According to the Centers for Disease Control and Prevention, motor vehicle crashes are the leading cause of death for US teenagers with six teens ages 16 - 19 dying every day in the US from motor vehicle injuries
• 56% of teens said they talk on the phone while driving
• More than 40% of teen auto deaths occur between 9:00 pm and 6:00 am

Tips on Teaching Your Teen about Driving Safely:

1. Lead by example.  Children are sponges and learn primarily by watching their parents.  If you speed, text, or use a handheld device while driving, you show your child that this behavior is acceptable.  If you don't want your teen doing something, you shouldn't do it yourself.

2. Discuss, review, and sign a parent-teen driving contract.  It puts the expectations of safe driving and the consequences of not following them in writing.  

New Hampshire Teen Driving Restrictions:

Although NH does not issue driving permits to young drivers, all drivers under 18 must attend driver's education.  New Hampshire is also one of the many states that have enacted GDL (Graduated Driver Licensing).

The purpose of GDL is to gradually allow the full privileges of a driver's license over time, once the young driver has more experience.  In New Hampshire, some of the driving restrictions include:

• a nighttime driving restriction between 1:00 am and 4:00 am until the driver is 18
  
• for the first six months, a newly licensed operator can not have more than one passenger under the age of 25, who is not a member of driver's family, unless with a licensed adult of at least 25-years-old
• no texting (applicable to all licensed operators in New Hampshire)
  
• can not operate a motor vehicle with more passengers than seat belts

Youthful driving requirements do vary by state, so it is important that you are aware of the applicable laws in any state where your teenager will be driving.  This will help you avoid paying a ticket in that state, as well as the very costly increase on your NH car insurance policy.  

For current information on youthful operators, visit the NH DMV website.

How a Teen Driver Impacts NH Auto Insurance:

Most people know that an inexperienced or young driver is much more expensive to insure than a driver with years of experience under their belt.  This thought alone can scare a parent into "forgetting" to add their new driver to their NH auto policy.  Please note, however, that we strongly discourage this practice.

The State of New Hampshire has fraud laws that allow an insurance company to deny a claim if the driver is an undisclosed household operator. In addition, the Attorney General can fine the policyholder in the range of thousands of dollars.

For more information on this topic, visit one of HPM's most popular blogs, What If I Don't Tell My NH Car Insurance Company about My Teen Driver.

Insurance-Friendly Cars for Teens

Your teenager has shown that they are a responsible driver and can handle their own car.  You are going to buy a car, but first you need to decide a few things.

Who will legally own the car, you or your child?  There are benefits and drawbacks to both options:

Insurance impact of teen's car owned by parent:

The benefit is that the vehicle would be on the policy with other cars, so you'd get a multi-vehicle credit.  If your auto policy is also with the same company that insures your home, the "new" car would also get a multi-policy credit.  Since many adults also have established credit, the additional car would get that credit too.

The drawback is that if you own the car and put it on your policy, it is all your liability.  If your teen has an accident, it would also most likely impact the entire policy, not just that vehicle.

Insurance impact of teen's car owned by teen:

The drawback is that it would likely be more expensive, since your teen would not get the multi-car, homeowner, or other credits you have on your policy.

The benefit is that your teen has a higher degree of responsibility if they own the vehicle.  They may be less likely to speed if they know they have to pay not only the ticket, but also the premium increase they would see.  If your teen is 18 or older, there may also be a benefit to furthering your own liability and assets from a youthful operator.

Regardless of who owns the vehicle, if you buy a slightly older car without a loan, you could consider removing collision coverage.  The premium would be considerably less, but you need to be comfortable walking away from the car without major financial impact.  Without collision, there may be no coverage for the vehicle itself if damaged.

How to get the best insurance rate for my teen driver:

Because HPM Insurance is an independent insurance agency, we stay informed about the many different insurance companies in NH that may be a match for a young driver. 

Is your teen an honor roll student or away at school?  If so, be sure to let your agent know, as these facts can provide significant discounts on your NH auto insurance.

Contact us today, and we'll be happy to give you specific advice that fits your needs and your teenager's.  Stay safe!