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Understandably, many parents are concerned about the day their child gets their driver’s license. With so many things a parent worries about, adding the fact that their child can now legally drive can be a frightening thought.
But a teen obtaining their license should be seen for what it really is: an exciting milestone.
Read below to find out what you need to know when your teen becomes a driver and how you can save money insuring your new driver.
What Type of Insurance Do Teens Need?
The fact is that each person who drives your car needs to be insured on that car. Most insurance companies also require that your teen be insured, even if they don’t plan on driving. The kinds of insurance your teen needs depends on your state, but as a general rule, here is what you need:
This type of insurance will help to cover any costs a that are associated with injuries or property damage that is the result of a car accident that you (or your teen) caused. Each state has different minimums, though almost every state requires liability insurance.
Uninsured Motorist Coverage
This type of car insurance is used to cover costs associated with being in an accident with someone who either does not have insurance or doesn’t have an insurance limit that will cover the costs of the accident. Again, each state has their own set minimum. When you get quotes online, you will be presented with what your state minimum requirements are.
Four Other Types of Insurance
Most states require liability and uninsured motorist coverage, however there are also other forms of insurance you may consider for your teen driver.
- Collision – Covers any damage to your car after an accident.
- Comprehensive – Pays for repairs that are not the direct result of an accident.
- Medical Payments – Pays for injuries that are the result of an accident.
- Uninsured Motorist Property Damage – Covers damage that is the result of an accident with a motorist who does not have insurance.
These other forms of insurance are optional in many states. So best to speak to an agent who knows all the laws and rules for your state.
The Basics of Insuring a Teen Driver
You may have heard this before, but teens are usually one of the most expensive age groups to insure. There is actually a pretty good reason for this. Teens are inexperienced behind the wheel. The truth is, teens receive tickets and are in auto accidents more often than other age groups.
Because insurance companies are also aware of this fact, they charge teens more while allowing older adults to pay less. Teens are just more likely to get in an accident, so it just costs more to insure them.
Your teen driver must be insured to drive. That means that when they get their learner’s permit, you should let your insurer know. And when they get their license, your teen needs to be added to your own policy. You may decide to get your teen their own policy if you like, though this is usually more expensive.
How to Save Money When Insuring a Teen Driver
Now that you know the basics of insuring your new driver, here are some tips to help you maybe save a little money while doing so.
- If You Have Part-time Custody – If you are sharing custody of your teen with another parent or guardian, be sure to let your insurance agent know. Some insurers only require the parent with primary custody to insure their teen.
- If Your Teen is Away at School – If your teen is moving away, like for college, and won’t be living at home anymore, let your insurer know. Some insurers will offer a break on rates if your student lives a predesignated number of miles from home and doesn’t have a car.
Top Tips When Insuring a Teen Driver
While this is a new and possibly unexplored time in you and your teen’s lives, here are some tips to help you both deal with this new responsibility.
- Let Your Teen Drive a Car That Will Be Cheaper to Insure – If you already have many cars in your household, you may want to pick the one that’s cheapest to insure and assign your teen to that automobile. This way, you take the lowest hit by adding them to your policy. If you are buying a car specifically for your teen, shop around and find one that will cost the least to insure.
- Avoid Distracted Driving – Teens today always are on their phones. In a car, this will certainly lead to disaster. Be sure you have had a conversation with your teen about the importance of driving without distractions. And remember, you are your teen’s first example and role model. So, put your phone away too.
Getting Started with Your Teen Driver
If you’ve got a teen who is about to get their learner’s permit, you need to have their insurance ready to go when they get behind the wheel. We are here to help cut some of the anxiety of having a new driver in the family. Contact us today to discuss your options.
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