When you're a parent and you're preparing to have a teen driver in your family, it can be emotionally stressful. You may also have quite a few logistical questions.
You can help your teen feel less anxious and more prepared to drive by preparing yourself, and also taking any necessary steps to get things in order for them.
One area where parents tend to have confusion is insurance. They don't know what type of insurance or coverage to get for their teen driver, including when their teen just has their learner's permit. The following are answers to some of the most common questions related to teen drivers and insurance.
Do You Need Insurance for a Learner's Permit?
If your teen has their learner's permit, do you need insurance for them? Typically, the answer is no. A teen with a learner's permit who lives at home will be covered under your policy as the parent, but you should still contact your insurance company to make sure.
With that being said, if you have a learner's permit, you do need to be covered under some type of auto insurance policy.
What that means is yes, you need car insurance if you have a learner's permit, but you don't necessarily have to have your own policy. Most policies will cover young drivers until they receive a driver's license.
Why Is It So Expensive to Insure a Teen?
Many parents have this question, and it's a fair one-it's expensive to insure teen drivers. Teen drivers are risky though, so it makes sense.
Unfortunately, while it can be scary for parents to hear, motor vehicle crashes are the leading cause of death among young people aged 15 to 20.
There are many reasons teen drivers are more likely to be involved in accidents. One of the big ones is the feeling they're invincible. As a teen parent, you probably know this all-too-well.
Teens are more likely than other age groups to engage in risky driving behaviors, and teen drivers don't have a lot of experience, so they don't have the broad skill set to navigate different driving scenarios.
Distracted driving and driving-under-the-influence are other factors that make teen drivers risky to insure.
Can I Save Money By Getting My Teen Their Own Insurance Policy?
When you add your teen to your insurance policy, it's going to raise your rates. Sometimes it can raise your rates quite a bit. That leaves parents wondering if it's better to add their teen to their family policy or get them their own. It's always best to add your teen to your policy.
It's going to be more expensive to purchase a separate policy.
Plus, if you don't add your teen to your family policy, you might not get enough coverage, or you might not add them to your other policies, which could be bad if there's a chance your teen will drive other family vehicles.
You need to list your teen on your policy right away.
Can I Get a Discount for My Teen Driver?
There are a few discounts your family might be eligible for, and you should inquire about them with your insurance company.
One of the most common is a discount for your teen earning good grades-usually a B-average or above. Good student discounts can be up to 10%, and if you add a new car to your policy you might be eligible for a Multi-Car Discount as well.
Potential other driving discounts can include discounts for taking a defensive driving class, low-mileage discounts, and discounts for adding certain safety features to a vehicle.
Is There Specific Coverage Teens Need?
There isn't any particular type of coverage a teen driver needs, but you may want to go beyond minimums required in your state. Speak with your insurance agent about your state requirements and also what might be best for your family.
Does My Teen's Vehicle Affect Insurance Costs?
The type of car you get your teen, if you're getting them their own vehicle, may impact the cost you pay for insurance premiums. The most inexpensive cars to insure for teen drivers are often mid-sized sedans.
Small cars and especially sports cars can be the most expensive, as can very large SUVs that might be more likely to rollover.
If your teen is preparing to be a driver, speak with your insurance company to make the best decision in terms of coverage and help them be better prepared for their driving experience.
