Having your teenage child sit behind the wheel is an exciting and nerve-wracking time for most parents, but teen driver insurance is also expensive. While your child moves towards more independence and self-reliance, most likely you will add them to our auto insurance policy. We give you the ins and outs of what you need to know to save money before you add teen driver insurance to your auto insurance policy.
Timing and Learners Permit Pass
First, it’s important to determine when you will need to add your teenager to your policy. Some states clearly set when you need to add your teen driver by law. In other cases, you can decide when to add your teen on board. It is advisable to begin your research on teen driving insurance some time before you actually have to do it, so you can avoid the unnecessary hassle, confusion, and high prices.
It is worth noting that many car insurance companies allow parents to list a teen with a learner’s permit on their policy free of charge until the child attains a full license or turns 18. However, with only a permit in hand, your teen will legally require an adult (over 21 years old) to sit in the passenger seat while driving, thereby reducing the risks associated with juvenile traffic accidents. However, this practice is not universal and your existing auto insurance company might not offer a free pass to your teen. So find out beforehand.
Benefits to Adding Them
While you do have the option of getting them a separate policy, adding your teen to yours has its benefits. In most cases, adding them to your existing family policy will be cheaper. Seek out discounts including:
- longevity with insurance carrier
- multi-policy (bundled auto, home, etc.)
- driver education discount
- type of car and features
- experienced driver
- good student discount
Now we will share the details about what you need to know about teen driver insurance.
Compare Different Policies
Getting quotes and detailed information on the requirements of different policies is always recommended for any type of insurance. Teen insurance is no different. Especially because there is always the possibility that the policy you had before getting your teen onboard will provide you the same advantages afterward. Premiums offered by different insurance companies are ranked differently with respect to teen insurance, and your best price on simple car insurance might not be the best price with your teen included. Some companies, however, offer multi-policy discounts which means if you have home, car, and life insurance from the same place, you will get every next policy cheaper. If you have multiple cars insured and you’ve been a customer for a long time, you may get discounted rates. No matter what, do some research and get to know different options beforehand.
Get Your Teen To Do Safety Courses
Most people are unaware of this but there are several insurance policies that offer lower rates for teenagers who have cleared some specified safety courses or education classes. Checking into different driver’s education courses as listed by different insurance companies can help you get much better rates. Likewise, data shows that teens that are good in their studies and obtain a B or higher grade on average are less prone to accidents and rash driving behaviors. Some insurance companies also have a clause that will incorporate the educational performance of your child and offer you lower rates.
Type of Car Matters
You are probably already aware that the type of car you own will determine the rate you get on your auto insurance policy. Same is the case with getting teen driving insurance. This is all the more important if you are planning on getting your teen a new car as well.
First, some cars are considered ‘more likely to get stolen’ which means their insurance will have higher premiums. These are not always more expensive cars, just the ones that are easily re-saleable and fetch higher prices for spare parts. Secondly, as a rule of thumb, older and used cars will be insured for less, and thereby the insurance policies for them will also cost less. Thirdly, a ‘safe’ car will get you your desired teen driving insurance policy at a favorable rate than an unsafe car. Look into the car makes and models with higher crash test ratings and top-class safety features.
Experience and Distance Could Mean a Discount
If your teen maintains a good driving record and a clean record with respect to traffic violations, you might be able to receive a ‘driver training discount’.
If your teen goes to an educational institution that is far away from your home – more than 100 miles to be exact – then they might qualify for a ‘college discount’ offered by many insurance companies. There are some additional conditions that go into this offering so check in with your insurance agent on this.
There is also a ‘low mileage discount’, which is offered to drivers who keep their annual driving distances less than 10,000 miles. Keeping them even lower, say 7,000 or 5,000 miles a year, will get your even higher discounts.
Having a new driver in your house is an exciting time. Now you can be certain you are teaching them safety and responsibility through teen driver insurance.