As a parent, you know that the most important thing when dealing with your new teen driver is that they are safe and insured. The process of adding your teen to your car insurance, though, can be pretty confusing and convoluted.
That’s why we made a list of everything you need to know about car insurance for your new teen driver. Check it out below, and feel safe knowing you’re making the best, most informed decision on insurance for both you and your teen.
Adding a new teen driver to your car insurance
Nearly every insurer requires that all licensed family members in a household are included on the policy, regardless of whether or not they drive your car. Do let the insurer know when your teen gets their learners permit. Typically, your teen won’t be listed until they’re licensed.
Yes, adding a teen driver to your insurance policy will raise your rate. It’s recommended that you increase your deductible to lower or offset the rate.
On the other hand, buying your teen a vehicle of their own may cost you less on a long-term basis, especially if you buy them a safe and nonflashy car. Research economical vehicles that cost less to insure.
Don’t immediately spring for every type of coverage that’s offered. For example, if your teen drives an older model car without financing, it would make sense to skip optional coverage, like collision and comprehensive.
Finally, remember that a state’s minimum coverage requirements will not always cover the cost of hospital care for other drivers and passengers, if the teen is responsible for an accident.
Discounts for teen drivers
Many insurance companies will reward good behavior with discount incentives. Such incentives could include discounts for taking a driver’s education course (like Aceable!), getting good grades, and honor roll credits.
You may also receive discounts for putting multiple cars on a policy, bundling insurance policies (like auto, homeowners and life insurance), and having certain vehicle safety features.
Plus, If your teen won’t be a regular operator of the vehicle, you could list them on your policy as an “occasional” or “pleasure-use only” driver. This will give you a break on the rate as well, as primary drivers will cost more.
How to pick an insurance option
We recommend AnswerFinancial as an awesome source for reevaluating the best insurance options when adding a new driver to your plan.
When looking for accurate insurance quotes, make sure you give complete and comprehensive information. This includes the year, make and model of vehicle.
Final things to know
Regardless of whether or not you add a teen to your policy or buy them a separate policy for their own vehicle, you must keep the insurance company updated. Always notify them about any grade or education changes that may affect premiums. Once your teen turns 18, you’ll need to update their information with the company as well.