If you are trying to reduce expenses, you may wonder whether it’s time to consider removing adult children from your automobile insurance policy. After all; your premiums were likely far more affordable before you added teenaged drivers to the policy. But the answer isn’t cut and dried. It depends on several factors, such as the sex and ages of your kids, their driving history, their income, and your financial situation.
Insurance Rates for Boys & Girls
Despite the change in many public restroom policies, for the time being, the insurance industry treats male and female drivers differently. The reasons for this are simple; teenage boys tend to have more accidents than girls. So, even if they share virtually the same driving habits, or even if your son is more responsible than your daughter, your daughter will likely qualify for a better rate than your son. Statistically, teenage girls are less likely to be involved in accidents and get fewer tickets than their male counterparts. And when it comes to setting policy rates, the insurance industry relies on hard numbers.
According to the Insurance Institute for Highway Safety (IIHS), “9.2 teenage male drivers die in automobile accidents for every 100 million vehicle miles, nearly double the death rate of 5.3 for female teenagers.”
What’s more, the National Highway Traffic Safety Administration (NHTSA) reports: “Many more men than women die each year in motor vehicle crashes. Men typically drive more miles than women and more often engage in risky driving practices including not using safety belts, driving while impaired by alcohol, and speeding. Crashes involving male drivers often are more severe than those involving female drivers.”This is why insuring a teenage son typically costs 25% more than insuring a teenage daughter. It also explains why men generally pay more for car insurance than women.
What does this mean when it comes to your adult child?
If your son is still in his teenage years when he ventures off on his own, and if he can manage the premium, you might consider removing him from your policy. That said, he will typically pay more for a policy that stands alone rather than the rate which is included in your family bundle. The same could be said of your daughter. If you are comfortable keeping your child on your policy until they graduate from college, you can give that a go. Just ask your insurance agent about best options.
Raising Responsible Adults
If your goal is to raise adults who take responsibility, Family Finance Expert Ellie Kay says the crucial time period to start cutting the financial cord is between the ages of 18 and 22. In many cases, excellent students who maintain a clean driving record and have a good credit score can secure auto insurance at competitive rates. So, if you’re an empty nester, take a deep breath. It might be time to push the little bird out of your nest so he can test his wings.
About Inclán Insurance Services
Inclán Insurance Services in La Verne, California, near San Dimas, and offers myriad insurance programs, inside as well as far outside of our immediate geographical location. Among our book of extensive insurance offerings: business – cannabis, contractors, general liability, worker’s compensation, commercial auto, commercial property, and entertainment; and personal – automobile, classic cars, motorcycle, health, homeowner’s, renter’s, and life insurance.