Because of their lack of driving experience, teenage drivers are at higher risk of getting into a car accident than more experienced drivers. For this reason, it is important to make sure you have adequate insurance coverage for your teenage driver.
Notify Your Agent
It is a good idea to notify your insurance agent before your teen obtains a learner’s permit. Your agent can advise you about when and how to add your teen to your insurance policy and give you an idea of what the expected change to your premium will be. Most policies will automatically cover a new driver while that driver has a learner’s permit, but it is best to verify this with your agent.
Talk to Your Teen About Safe Driving
The cost of insurance for teenage drivers can be high, but if your teen maintains a safe driving record, the cost should decrease over time. Make sure you emphasize safe driving and discuss the responsibilities that come with operating a motor vehicle, including the cost of insurance. Be sure to explain that reckless driving can have serious consequences, such as loss of license, higher insurance premiums, lawsuits and serious injuries that may require the services of a Las Vegas personal injury lawyer.
Ask About Discount Programs
Many insurance companies offer discounts that can lower the cost of insuring a teen driver. Examples include good student discounts, discounts for completing a driver training course and lower rates for college students who do not take a car to campus.
Compare Prices
It usually costs less to add your teen to your policy than for your teen to get a separate insurance policy. If your teen has a car and you add that car to the policy, you may be eligible for a multi-car discount. However, different companies have different pricing policies for young drivers, so it pays to shop around. On average, expect a premium increase of around 130%.
Pay Attention to Vehicle Assignment
If your insurance company will let you choose which vehicle to assign your teen to, pick the one that has the least value. Insurance rates are generally cheaper for lower value vehicles. However, you will need to make sure your teen only drives that vehicle, or you could face penalties and premium increases if your teen is involved in an accident while driving a different car.
Choosing the Right Car for Your Teen
Safety should be your primary concern when choosing a car for your teen. If possible, choose a car manufactured in 2014 or later, because these vehicles have the best safety features. Avoid sports cars and other types of vehicles with powerful engines. These vehicles are both a safety risk and more expensive to insure. It is best to choose an economic vehicle with good safety ratings. Luxury cars will come with higher premiums and some economy cars may have poor safety ratings. Ask your insurance professional for recommendations and pricing before you purchase a car.
Consider Increasing Your Liability Limits
Most states require all licensed drivers to have liability coverage, even if that driver does not own a car. However, the state minimum requirements are often not enough to completely cover the liability your teen may incur in an accident that involves serious injuries or property damage. If you do not have enough liability coverage, you will be held personally responsible for paying the difference. You can offset some of the increased cost of this extra liability coverage by increasing the deductible on your collision coverage or dropping collision coverage from any of your lower value vehicles.
Insuring a teenage driver can be expensive; however, not doing so can be a violation of the law and put your family at risk of financial ruin should an accident occur. It is best to consult with an insurance professional before your teen begins driving to determine when and how to add your teen to your policy.
