What Happens to my rates if my teen gets a ticket or is in an accident?

No one likes to think they're going to be in an accident or get a ticket and we can all agree we would never want our child to experience these events, either. Sadly, teen drivers are likelier to get a ticket or be in an accident. From an insurance perspective, if your teen gets a ticket or is in an accident, they are more likely to get another ticket or be in another accident. Since teen drivers already present a higher risk than more experienced drivers, the insurance company charges a higher rate for the risk they present. When your teen gets a ticket or is involved in a car accident, you expect your car insurance rate to increase significantly, especially if they were found at fault for the accident.

 
Most car insurance companies consider the severity of the incident when adjusting rates. For instance, a minor traffic violation like a speeding ticket might result in a smaller rate increase compared to a major accident with injuries. These adjustments are typically reflected in the policy renewal offer. It's important to note that your premium rate doesn't automatically adjust following an incident, but rather, is rated on the next policy term. If your teen has a history of multiple accidents or tickets within a specific period, the insurance carrier may not offer a renewal policy. This underscores the importance of monitoring your teen's driving habits.

When facing a renewal that's either way higher than the last term or a non-renewal scenario, talk to your insurance agent to discuss how your teen's driving habits impact your premiums. Understanding the rating and renewal process can help you to make informed, confident decisions about your teen's driving habits and insurance rates. Be sure to ask your agent what discounts your teen may be eligible for or if any programs or training courses could help premium rates decrease. Insurance companies are different and have different appetites for the types of risks they want to bring on. It may be a good idea to look at other insurance offers from other insurance companies to try and find savings.