A growing number of Gen Z teens are putting off obtaining their driver’s licenses, and when they do hit the road, they tend to drive less compared to previous generations such as Baby Boomers and Gen Xers.
Fewer teens are driving for numerous reasons, including the following:
- Too busy to go through the licensing steps
- Can’t afford the expenses associated with driving, including auto insurance
- Other forms of transportation, such as Uber and Lyft, are easily accessible
- Virtual contact with peers lessens the need for face-to-face contact
All but seven US states upgraded licensing requirements by enforcing minimum practice hour requirements and learning periods. They may also have night and passenger restrictions for teen drivers. Many teens choose to wait until they can legally drive without the hassle of a restricted license. In all 50 states, 18-year-olds are allowed to drive with no restrictions if they can pass applicable written and driving exams.
Once your teen decides it’s time to get behind the wheel, insurance is a must. Teen auto insurance rates can be high, but parents have options when it comes to securing affordable and appropriate coverage.
When shopping around for teen car insurance, keep these tips in mind:
- Lenders may require full coverage insurance, which can be expensive for inexperienced drivers.
- You may need higher limits than required, depending on your situation.
- Switching insurers may eliminate multipolicy discounts.
- Increasing your deductible may help defray costs.
At Dealers Risk and Insurance Services, we can help you shop around for favorable car insurance rates and help you understand the potential costs of insuring your teen driver.