Buying Auto Insurance for Teen Drivers

Driving may be a rite of passage for teenagers, but for parents it can be stressful and expensive. Your child will need auto insurance coverage as soon as he or she receives his or her driver’s license.  Here are some important considerations:
 
Determine Whether to Add your Child to your Policy, or Purchase a Separate Policy
 • Check with your insurer to see how your premiums are affected. Expect them to rise dramatically, but savings may be found through multiple car and good student discounts.
 • If your child is driving an “old beater” that doesn’t require comprehensive or collision coverage, a separate policy, in limited instances, may save you money.
 • Discuss your options with your insurance agent.
 
Consider your Teen Driver Coverage Choices
 • Most personal auto policies won’t cover a driver transporting goods or services in exchange for a wage. So, if your teen is planning on becoming a pizza delivery driver, contact your insurance agent to determine if additional coverage is needed.
 
Find Ways to Save Money
 • Consider vehicles with high safety ratings over sportier, more expensive cars.
 • Think about raising your policy’s deductibles.
 • Reassess your need for collision or comprehensive coverage.
 • Ask about “occasional” or “pleasure-only” discounts, which may apply to children away at school.
 • Explore usage-based insurance, which involves installing a device in the vehicle that monitors driving behavior and rewards good driving. It’s also a way to keep tabs on your teen’s driving.
 • Have your teen complete a driver’s education course.
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