Putting a teenager behind the wheel of a car can be an anxious time, and adding teen drivers to your auto insurance can add to that anxiety. Teenagers are among the highest risk demographic and therefore it can be an expensive proposition to add them to your policy.
If you are looking for information regarding adding your child to your auto insurance policy, start below.
Most auto insurance carriers do not require you to put your teen drivers on your policy until they have acquired their driver’s license. In other words, when your teen has a permit and you are teaching them to drive, they are typically not required to be added to your policy. (Be sure to ask your insurance company as to the specific terms of your policy.)
As soon as your teen obtains their license, they will need to be added to your policy. Many people wonder if it will be cheaper to have your teen obtain their own policy, but in most cases the best value is to add them to yours. Because they have no experience driving, their premiums are higher due to risk. Your rates are bound to go up, so you may want to take the opportunity to speak to your agent about other ways to save money.
- Ask about multiple car discounts: You can generally lower the cost of your own coverage when you cover multiple cars on the same policy. This is why a single policy for the family may work out better financially than separate policies.
- Ask about different classes of coverage: Ask your carrier if there are any levels of coverage for your teen driver. For instance, they may be able to get a discount if they will only be driving occasionally, or have a short commute to work or school. Although there are not always options, it doesn’t hurt to ask.
- Choose a different car: If you purchase your teen a sports car, you may find your rates higher than buying them a car with a high safety rating. Although teen drivers are always looking for the cool car, putting them in a practical vehicle can save you quite a bit of money.
- Assess required coverage: You may wish to consider the level of coverage you need on the cars you purchase for your teen drivers. If they are older vehicles, collision or comprehensive coverage may not be necessary.
You should also take this opportunity to reevaluate your own policy coverage and see if there are ways for you to save on your coverage, independent of your teen. For instance, you may be eligible for a safe driver discount, or you may be able to save significant money by bundling your home, auto and even health policies together.
If you are looking to save money on your insurance policies, call Anderson & Associate Insurance Group for a free quote and to discuss your options.
