Car insurance and teenage drivers: Some things every parent needs to know

You remember them as babies, toddling around. But now, they are teenagers and they want one thing: to drive. What do you know about car insurance and teenage drivers?

If you have a new driver, you are likely wondering about car insurance. It can be a scary time. You have to let go while teaching your teenager to be safe and make good choices.

So, what do you need to know about car insurance and teenage drivers?

Will my car insurance rates increase with a teenage driver?

To answer generally: Yes. If you have a teenage driver, your car insurance rates will go up. You can control how much the rate goes up, however, with some basic knowledge. The fact is, teenagers are more liability for insurance companies so they do cost more to insure. But talk to your agent and he or she can help you get the best possible rate.

There are discounts for good grades and for teens who complete additional driver training, to name a few.

Does my teen need her own policy?

You can get your teenager his or her own policy, but it’s probably best to add your new driver to your existing policy. And you should try and do this when they get their learner’s permit (usually, this doesn’t cost anything but each policy is different).

Then, when she gets her license, call your agent to let them know!

It’s almost always less expensive to add your teen to your policy, rather than getting him his own policy, also.

What kind of coverage do I need?

In a word, you’ll need everything for a new teen driver (as well as most drivers, in our opinion!). Honestly, you probably should consider actually increasing your liability coverages more because your less experienced driver is more likely to actually cause an accident with greater damages than you would, as a more experienced & defensive driver. The wrong deductible may cause a bad month or two, but the wrong liability limit could have your wages garnished or assets frozen for decades or even a lifetime.

Look into getting a policy with liability, injury and comprehensive coverage limits, in addition to collision insurance. And get a good roadside package, so they have help.

Don’t forget, this is a great time to act responsibly and make sure everyone has enough life insurance too! The discounts may even offset the cost of the auto insurance.

Skip Ivery Agency

At the Skip Ivery Agency, we can help you get the car insurance you need at a price you can afford for your teenage driver. Contact us today.