Teenage Driver, Trumbull Insurance and Price variation between state


Unfortunately, at Trumbull insurance company there is no magic bullet for this one. Teenage drivers are going to increase the price you pay for insurance. That said here are a couple of suggestions to minimize the pain. When Should You Add Them to the Policy – Ask your agent when they need to be added. You want to know when the policy contract requires them to be added. If you do not add them properly and there is an accident, your Trumbull insurance claim may be denied. While your teenager is driving with a learner’s permit, your insurance rates may not be affected. Once they receive their license, they need to be added.

Factors that affect the price you pay for auto insurance

The price for insurance is calculated by taking the State’s Total Premium and dividing by the Liability (BI/PD) written car years (roughly it is the number of policies written). There is a considerable difference in the price paid for insurance, in pure dollars spent. People in New Jersey spend more than twice the amount that people in North Dakota.

But when you consider what people earn in New Jersey compared to what they pay for insurance, there are 16 states whose residents “pay” more. When you look at insurance as a percentage of income, the top 5 states are Louisiana, New York, Florida, West Virginia, and Mississippi.

Student Discount

Good Student Discount – Trumbull insurance company provides discounts for good students. The company will provide a discount if your teenager maintains a “B” or better average in school. If your company does not, you are in the right time to switch to Trumbull insurance company. Also, Trumbell insurance company may give a discount if your child completes a safety course or driver’s education. Even if they don’t, this additional experience is probably worthwhile.

Why do Prices Vary Between States?

There can be considerable difference in the price for insurance between states. The reasons for this are:

State Government Oversight – Every state has different laws, rules, and coverage requirements. Each state has a government body (Department of Insurance) which oversees the companies and prices charged in that state.

State Regulation – Some states take a more active role in monitoring and regulating the prices charged by insurance companies. In these states, the regulatory body requires rates (and sometimes rule changes) to be pre-approved before implementing. Sometimes it can take several months for a company to get a change approved, and the changes requested may be different than what the department approves. In addition, some states may have No-Fault laws while other states have a Tort system. The minimum required Bodily Injury limit in each state may vary.

Population and Population Density – Some states are more congested than others. As a rule, the denser or more congested the population, the more accidents that occur. More accidents mean higher prices for insurance.

Amount of Competition – Some states have more competitors than other states. Usually, the more competitors in a state the greater the availability of the product. This creates more choice for the customer.

Income – Median household income varies by state. In states with higher household incomes, the cost to repair cars and medical expenses will also be greater.

Get a Separate Policy for Them – It may be beneficial to put your teenager on a separate policy, and maybe with a different company. While you may lose a multi-car discount, there may be a company that has better rates for youthful drivers. Shopping around and comparing prices will take some time, but you may be able to save a significant amount of money. This will be especially true if your company does not allow you to assign drivers to cars for rating purposes. You may be able to determine this if in the process of adding the youthful driver they ask you which car they drive. If they don’t ask you this, then they may be rating your teenager on a more expensive or newer vehicle. Then you should shop for a company like Trumbull insurance company that allows you to assign drivers to vehicles. Always assign your teenager to the older, less expensive vehicle.

Buy your Teenager an Older Car – There are a couple reasons to do this. Older cars are cheaper to insure and if the car is at least 5-7 years old, you may be able to go without physical damage coverages (Comp and Collision). You need to make the choices on safety, affordability, etc., but one point to consider is that getting an older car that requires less insurance coverage.

Share the costs – Have your teenager share paying for the cost of gasoline, oil changes, other operating costs, and insurance. This may help them take responsibility for the car and not consider it a “free ride”.

Final thought – Accident fatalities are the number one cause of death for teenagers, so proper training, vehicle safety, and awareness for both the parent and child are very important. While the cost of insurance is a consideration, keeping our kids safe is critical.