An Anxiety Filled Time For Parents of Teen Drivers

Adding a teen driver to your insurance policy can be a nerve-wracking experience for any parent. Concerns about skyrocketing premiums, increased risk of accidents, and the safety of your child on the road often weigh heavily on your mind. You may wonder if they’re prepared to handle the responsibility of driving and how it might impact your family’s finances and peace of mind. Navigating this milestone requires understanding your options, managing risks, and finding ways to balance their independence with your need for reassurance.

Why Are Auto Insurance Premiums For Arizona Teens So High?

Arizona ranks seventh riskiest in the United States for teen drivers. This ranking reflects high rates of fatalities, impaired driving incidents, and involvement in fatal crashes. Here’s a detailed breakdown of the data for Arizona:

• Fatalities Caused by Young Drivers:
  • 12.98% of all traffic fatalities in Arizona were caused by drivers aged 15-20.
  • 2.27 people per 100,000 residents were killed in crashes involving young drivers.
• Impaired Teen Driving:
  • 5.53 per 10,000 licensed teen drivers in Arizona were involved in fatal crashes due to speeding, distracted driving, or drunk driving.

Comparative Analysis of Teen Driving in Arizona

While Arizona faces challenges in teen driver safety, its statistics are better than states like Wyoming or Kentucky but worse than states with comprehensive teen driving programs like New York or New Jersey. Arizona’s relatively high population of young drivers and vast network of highways contribute to its ranking.

Risk Factors for Teen Drivers in Arizona

1. Speeding: Arizona is on the upper limit of maximum speed limit at (75 MPH).  Only 7 states have have higher speed limit than Arizona.  High speed driving is the leading cause of fatal crashes among teen drivers in Arizona.
2. Impaired Driving: Nearly 28% of teen drivers involved in fatal crashes in Arizona were under the influence of alcohol or drugs.
3. Distracted Driving: Teen drivers in Arizona face challenges with distractions such as texting, texting and driving and texting and posting while driving.  The mobile phone is a  significant contributor to accidents.

Solutions for Safer Teen Driving in Arizona

Addressing teen driving safety in Arizona requires a multi-faceted approach:

• Graduated Driver Licensing (GDL) Programs: Strengthening Arizona’s GDL programs to ensure teens gain more supervised driving experience before earning full driving privileges.
• Awareness Campaigns: Initiatives targeting teens and parents to educate about the dangers of speeding, impaired driving, and distractions.
• Law Enforcement: Enhancing enforcement of traffic laws to deter dangerous driving behaviors among teens.

Arizona’s Road Ahead

Improving teen driver safety in Arizona is critical for reducing traffic fatalities and injuries. By implementing targeted initiatives and fostering a culture of responsible driving, Arizona can make its roads safer for all residents.

Arizona has the opportunity to join the ranks of safer states like New Hampshire and New Jersey, but it requires a collective effort from policymakers, law enforcement, parents, and young drivers themselves.

The Impact of Adding a Teen Driver to an Auto Policy

Adding a teen driver to an auto insurance policy significantly increases premiums. On average, families can expect a 100-130% increase in annual premiums when a teenage driver is added. This is primarily due to the higher risk associated with inexperienced drivers.

Key Factors Influencing Costs

There are things that a parent can change and some a parent cannot.  With proper management of three of these items, costs can be mitigated.

1. State and Region:
   • Arizona families typically experience premium increases that align with the national average. However, rural areas in Arizona may see smaller increases compared to urban areas like Phoenix or Tucson, where accident rates are higher.
2. Gender of Teen Driver:
   • Male teen drivers generally result in higher premium increases (10-15% more) due to a statistically higher likelihood of risky driving behaviors.
3. Vehicle Type:
   • If the teen drives an older, less expensive vehicle, the cost impact is reduced. Conversely, a new or luxury car increases premiums significantly.
4. Driving Record and Grades:
   • Insurers often offer discounts for teens with a clean driving record and good academic performance (e.g., a “B” average or higher), reducing premiums by 5-25%.
5. Coverage Levels:
   • Families can mitigate cost increases by opting for higher deductibles or reducing optional coverage like collision or comprehensive on older vehicles.

Average Premium Increases in Arizona

Warning: This information is circa 2021 and is for illustrative purposes only.

Insurer	Average Annual Premium (Before Teen)	Premium After Adding Teen	% Increase
State Farm	$1,600	$3,500	120%
GEICO	$1,200	$2,800	133%
Progressive	$1,400	$3,200	129%
Allstate	$1,800	$4,000	122%

Source IIS

 5 Strategies to Reduce Costs For Teen Drivers

First and foremost, talk to a licensed agent that has relationships with multiple insurance carriers.  This will provide you with up to date pricing on companies that specialize in auto policies for Arizona teens.  If you are going to to do it yourself, look into these five things.

1. Good Student Discounts:
   • Many insurers offer discounts for teens with a GPA of 3.0 or higher.  Experienced agents can identify companies that offer discounts ranging from 10% – 15%.
2. Driver Safety Schools:
   • Completing an accredited driver education or safety program can lower premiums by up to 10%.  The key is accredited as not all driving schools are created equally.  Here is a list of the best driving schools in Arizona.
3. Telematics Programs:
   • Some insurers offer usage-based insurance (UBI) programs that monitor driving behavior. Safe driving habits tracked via apps or devices can result in lower premiums. The savings are between a modest 5% and a staggering 30%, depending upon the company.  If your insurance company does not offer Telematics, take advantage of these open source teen driving platforms.
4. Bundling Policies:
   • Bundling home, auto, and umbrella policies often leads to discount. If you have a boat, RV or ATV, bundle this as well.  For those without those luxuries,  an umbrella policy will provide additional liability coverage for your family.
5. Policy Adjustments:
   • Adjusting the policy to reduce coverage levels on older vehicles driven by the teen may help lower costs.

In Summary

Adding a teen driver to an auto policy in Arizona is a costly adjustment but manageable with proper planning. Families can take advantage of discounts, safe driving initiatives, and policy adjustments to mitigate the financial impact. Understanding the specific risk factors and tailoring coverage accordingly can result in significant savings.