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Teenager Auto Insurance

Getting a driver’s license is a monumental moment. Being able to drive comes with a new sense of freedom that many teens cannot wait to take advantage of. But as great of an accomplishment as this is driving comes with a variety of risks, and you want to make sure your teenager is protected when behind the wheel. That is why teenager auto insurance is vital for every young driver. Threats are all around when on the road, and you need to make sure everyone in your household is protected.

Auto Insurance For Teenagers

Regardless of what state you live in, auto insurance coverage is a must for all drives, especially teenage drivers. Keeping up with coverage and premiums is a great habit to install in teens right when they begin driving. They need to understand that driving without insurance is not an option and can land them in serious trouble. For this reason and many others, you are going to want to make sure your teen has the proper auto insurance. Some providers offer specialized coverage for teen drivers, but standard insurance is also available. Still, it is important they know their coverage limits and everything else that the policy entails.

When to Purchase Teens Car Insurance

You should purchase auto insurance for teens after they pass their driving test and obtain their driver’s license. Before, they were covered under the household insurance policy since they are still in the learner’s permit phase. But the minute they get that shiny, brand new license, it is time to get them coverage. Every driver on the road needs insurance, and teen drivers are no exception. Start planning how they will get coverage before they get their license, just so everyone is on the same page when the time comes.

The Price to Insure Your Teenage Driver

The cost to insure your teenage driver can be great. Your insurance premiums can increase by up to 130% upon adding your teen to your preexisting insurance policy. When it comes to setting insurance rates, companies tend to look at personal factors like driving records, vehicle details, and experience behind the wheel. When you have a teenage or young driver to insurance, they are lacking both a driving record and years of experience on the road. Typically, the better of a driving history you have, the better your insurance rates will be. Without anything to determine how good or bad of a driving someone is, insurers have no choice but to charge high premiums for coverage. How much you or your teen will have to pay is also dependent on other aspects like their sex and zip code. Premiums are customized, and this is something young drivers need to understand. Sometimes they can change factors, and other times they can’t. By being smart and safe drivers year after year, teens can work to lower insurance rates.

Adding to Existing Policy vs. Purchasing New Policy

There are generally two ways you can go about getting your teenager car insurance coverage. Each comes with its own pros and cons, especially when it comes to cost, and should be analyzed prior to finalizing a policy.

  • Adding to your current auto insurance policy - This is regarded as the cheapest way for teens to get coverage, assuming you do not have any outstanding violations on your record. You can add your teenager as another driver on your policy. This would work great if they are driving your car. Including a whole new car in your policy can greatly increase your premiums. Keep in mind, though, that your rates will get slightly higher to account for the new person on the policy. You also want to be mindful of the coverage you have purchased. For example, liability insurance may have been fine when it was just you on the policy, but with a new driver, it would probably be helpful to have collision coverage.
  • Opening your teenager their own policy - This route is never really recommended due to how expensive it is for teenagers to get coverage. It can cost thousands of dollars per year due to their lack of experience behind the wheel. Many are unable to afford these rates. However, this may still be an option for you for a couple of reasons. Suppose you have multiple moving violations on your driving record and insurance rates are already high. Adding your teen to the policy will only increase them. Purchasing them their own policy could very well be cheaper. This may also work if they have their own vehicle, particularly one that is new and expensive.

Discounts For Teen Auto Insurance

Getting your teenager good insurance can come with a pretty hefty price tag. You never want to skimp on coverage, but, at the same time, you don’t want to actually break the bank. Thankfully, there are a number of discounts available to lower insurance premiums. They are outlined in further detail below.

Good Student Discount

A number of insurance providers offer discounts for students who maintain a high-grade point average. They tend to assume that students who show responsibility and keep their grades up will also be smart, responsible drivers. To get this discount, insurance companies typically require teens to maintain a B average or higher in school. If interested in this discount, you will have to provide proof of your teen’s grades, typically in the form of a transcript administered by their high school or college.

Defensive Driving Courses

Safe driving is always a must and can keep premiums low, even for young drivers. One claim is enough to make rates skyrocket. Teens can sometimes qualify for safe driver discounts if they maintain a claims-free record. If you wish to take it one step further, you can have your teen driver complete an approved defensive driving course. Completion shows your insurance provider that your young driver is serious about being a safe and smart driver. Through the class, they learn how to be mindful when driving and how to approach obstacles, among other lessons for driving safely. This can help you get more affordable insurance rates on top of your teenager continuing their safe driving.

Accident Forgiveness

As previously mentioned, one accident claim can increase your rates astronomically. You can easily see a 30% increase. Teen drivers can be very prone to accidents, but accident forgiveness can help keep insurance rates low. With accident forgiveness, premiums will not be affected following your teen’s first at-fault accident. This is not always offered by every insurance provider, nor do teen drivers always qualify for it. Check with your insurance agent for eligibility.

Adjust Insurance Deductible

One common way drivers lower their insurance premiums is by increasing their deductible. A deductible is an amount you promise to pay out of pocket following a claim. Your insurance policy will not offer assistance until the deductible portion is paid. The more you promise to pay, the lower your insurance premiums. You can increase your deducible to get the lower rates but just make sure that either you or your teen is able to pay in the event of an accident claim, however you work it out with them.

Loyalty Discounts

If your teen driver maintains their policy with a specific insurance company, they may be rewarded with a loyalty discount. The longer they keep their policy with an insurer, the better the discount they may get. Check with your insurance agent about loyalty discount availability. Not everyone qualifies, nor does every insurance company offer it. If they do, this might be a smart thing to get your young driver started with right away since loyalty discounts take time to come into effect.

Choosing an Insurance Provider For Your Teen Driver

If you feel your teen would benefit from having their own insurance policy, or perhaps you feel it would simply be better to switch insurers, there are some things you need to keep in mind when shopping. Getting coverage may be tricky with a teen driver. Listed below are some things you should consider when settling on an insurance provider.

  • Be mindful of coverage - You want to make sure your young driver is covered properly. It is generally advised that teen drivers have high coverage limits. Their chances of accidents are greater than other drivers on the road. You should also consider policy add-ons like comprehensive coverage. Make sure you pull multiple policies from a variety of insurers to compare and analyze.
  • Remember your budget - As we have discussed, the cost of insurance for teen drivers can be pretty ridiculous. Keep your budget in mind and pull quotes when you are going to analyze policies. You want to make sure your teenager will not only have good coverage but also be getting it at a good price.
  • Research the company thoroughly - Not all insurance companies operate the same. Some provide better customer service than others. You want to research reviews on a provider before signing a policy with them. Insurance agents can really make or break a company, and you do not want to be stuck arguing with one when it comes time to file a claim.
  • Inquire about discounts - Don’t forget about all the discounts companies offer. Be sure to ask about them specifically just in case there are some you qualify for that were not disclosed on the website.

Get an Auto Insurance Quote Today

Ready to purchase teen auto insurance? Reach out to one of our expert agents to get a free car insurance quote. Make sure you provide us with details about your teen and the vehicle they will be using. By providing us with this information, we get a better idea of the coverage needed. You can get a quote from us either at one of our many locations or online via our website and mobile app. We are also just one call away. Get your teen auto insurance today and drive worry-free tomorrow.