I spent an afternoon recently researching how parents can deal with the sticker shock of adding a new teen driver to their car-insurance policy, and then took a break to walk the dog. At the end of our very quiet, nearly suburban block, we encountered an unfortunate accident, wherein a young woman with a sticker on her driver’s-side door that said “New driver — please be patient” had plowed her SUV into the rear end of a parked sedan for no discernible reason.
Nobody really needs to tell you why insurance rates for new, young drivers are so high. Sure, an actuary can explain the risk-pool mechanics and a business analyst can explain the dynamics of market pricing. But you usually don’t need to go more than 20 feet from your own house before you encounter an example of idiocy, inexperience or just sheer bad luck, which is what makes adding a teen driver to your policy such a nightmare. That makes the bottom line clear and unwavering on insuring a teen driver: Your costs will double, at least, says Mark Friedlander, a representative of the Insurance Information Institute, a trade …
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