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Colorado Insurance Blog

Factors That Affect Teen-aged Drivers’ Insurance Rates in Colorado

When your Denver, CO teen drives with their instruction permit with a licensed adult’s supervision, they are not required to carry their own automobile insurance policy. However, once they start driving solo, they’ll need auto insurance, too. There are two main factors that weigh in on the cost of your teen’s insurance coverage that typically leads to a more expensive policy.  

Age of Teen Driver 

Due to the fact that the risk of being in a collision is significantly higher for teen drivers, policy premiums typically are as much as three times as expensive for teens than drivers in their mid-thirties. Even though they only account for 7 percent of all licensed drivers, drivers between 15 and 20 years of age were responsible for more than 10 percent of all fatal accidents, as well. Insurance providers have to charge more for insurance coverage for teens because they have to pay out more in claims to that age group. The good news is, with a clean driving record, and more experience under their belt, once your teen hits 25, their auto insurance premiums could drop by 30 percent. 

Auto is Owned and Licensed by Teen 

When the vehicle your teen is driving in Denver, CO is owned by them, they are on the car’s title, and they are paying for auto insurance, it is assumed that they are the main driver of the vehicle and their premiums are adjusted for their specific risks.  

How Can a Teen Driver’s Insurance Premiums Be Reduced? 

One of the ways to reduce your teen’s auto insurance premiums is to add them to your own policy. On average, it costs almost half as much to add a teen to your AFI Insurance policy than for them to start their own. Because you are taking on part of the risk, their premiums will be lower. Keep in mind that adding your teen to your existing policy will make your premiums significantly more expensive.  

For more information on factors that can reduce your teen driver’s auto insurance premiums, call the insurance experts at AFI Insurance today. 

Home Insurance Discounts to Be Aware Of

Denver, CO homeowners may be missing out on home insurance discounts they aren’t aware of. Each insurance company, including AFI Insurance, has its own set of discounts so you need to check with your agent to see what is offered and how you can qualify.

Bundling: It’s possible to get a discount for your home, auto, and other policies if you purchase them all from the same company. Since insurance companies like it when you buy more than one product, they will reward you with a discount.

Loyalty: Insurance companies also value loyal customers. If you stay with the same company long enough, you may get some savings.

Claims-Free: If you go a certain number of years without filing a claim on your home insurance, you may get a lower rate since you are considered low maintenance for the insurance company.

Burglar System: You may get a lower price on premiums if you have a monitored security system. These systems deter would-be thieves, which reduces your chances of a break-in. These security systems allow the police to respond faster, which helps increase the chance of catching any burglars.

Fire Safety Measures: The faster the fire department can get to your home, the less damage the home will suffer. This means claims to the insurance company will be smaller and why you may get a discount.

Impact-Resistant Roofing: Since roofs are expensive, anything you can do to lessen the chances of roof damage may result in a discount.

Home Improvements: Not every home improvement will qualify for a discount but if you make your home strong in terms of structure, longevity, or safety, you may qualify. Examples of these home improvements include new plumbing, wiring, and roofing.

Living in a Gated Community: Living in a gated community can save you money and there is less chance your home will be burglarized.

Contact AFI Insurance, serving Denver, CO, to get a quote on home insurance.

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