Teen Drivers and Auto Insurance
When you’re preparing for a new driver in the family, it can be scary to think about adding them to your insurance policy. Learning to drive is already a big step and facing increases in your insurance rates can be scary. Getting the details of this process and how you can save money while you’re at it, will make the process much easier.
The Most Common Questions About Insurance for Teen Drivers
Buying car insurance for your vehicle can, sometimes, feel like a complicated process, but when it comes to buying the right auto insurance for your teens, the confusion seems to increase. Understanding the insurance buying process for a teen driver will save you time, money, and effort from beginning to end.
These are some of the most common questions about insuring your teen driver.
When’s the Right time to Insure My Teen Driver?
Commonly, auto insurance companies will not require you to formally include your teen driver to your insurance policy until he or she gets a drivers license. However, if your teen has a permit, it is important to let your insurance company know, as they might have different regulations in place for that type of situation. Typically, insurance companies will extend your insurance policy to include your teen, when they just have a permit.
Will Insuring My Teen Driver Be More Expensive?
Based on statistics and risks, teen drivers do tend to get involved in more car accidents than licensed adults, and the insurance industry builds their pricing around that data. This means you can expect your rates to increase when including a teen driver. However, the cost is typically lower when including them to your existing policy, rather than purchasing a policy just for them.
How Can Teens Help Reduce Their Rates?
Your teen can be actively involved in helping you save money on car insurance. This will exercise their sense of responsibility, which is great at their age.
Keep Their Grades Up
Most insurance companies offer discounts to good students that manage to keep their grades in the A/B average range.
Take a Drivers Education Course
Learning the rules of the road and successfully completing a drivers ed course —even if it is not mandatory in your state— is something that many insurance companies reward.
Keep a Clean Driving Record
Regardless of the age, everyone sees the benefit of keeping a sparkling clean driving record. Encourage your teens to drive safe by rewarding them with something they like, or promote it by setting limitations around their cell phone or car use.
To learn more about your auto insurance policy and what you need to do to insure your teen driver, talking with your insurance agent is the best option. At AAI Central Agency, our independent insurance agents are always equipped with industry knowledge and are there to understand your needs so they can help you find insurance options that suit you the best. Give us a call.