Will My Greensboro Car Insurance Premiums Increase Once My Teen Has a License?

Operating a motor vehicle carries with it certain risks, as is evidenced by the number of minor and major auto accidents that occur on our roads every day. Car insurance is a means for the potential risk of financial loss resulting from owning or operating a vehicle to be shared. Car insurance companies are in the business of taking on the financial risk of their policyholders in exchange for a predetermined amount of money (premium), should said policyholder suffer a loss regarding their automobile.

 

Who Determines Your Policy Cost?

The amount of Greensboro car insurance premiums you're charged for your auto insurance policy is directly related to the amount of perceived risk you represent to your insurer. Lots of data figures into the calculations used during the underwriting process, including:

• Age
• Geographic location
• Driving history
• Make, model and value of your car
• Credit history
• Claims history
• Coverage types and amounts
• and much more

Drivers with a poor driving record or poor claims history represent a higher risk to their insurer and will, therefore, be charged a higher rate for their Greensboro car insurance premiums. A more expensive car or full comprehensive coverage will also cost more in the way of premiums because the insurance company's exposure is increased and, in the event a claim is made on an expensive or fully insured automobile, the claim will be higher.

Experience is a Big Determining Factor

A driver's experience is a huge factor in determining the amount of risk he or she represents, especially if they're below nine years of driving. It's been proven statistically that new drivers are more likely to be involved in an accident due to their lack of driving experience. When a newer driver takes out an auto policy, he/she will be charged some of the highest rates of any drivers. If a teen living at home is added to his or her parents' policy, it will cause a significant increase in the policy cost, although generally less than what the teen's individual policy would cost.

A recent study found that the amount of increase a married couple adding a teen to their car insurance policy depends greatly on their geographical location. At the time of the study, the most expensive states for adding a teen driver were Arkansas (+116) and Utah (+115%). Fortunately for you, North Carolina was one of the lowest at +59%.