We all remember the rush of excitement when we finally got our driver's license, and now your teenager is about to enjoy the freedom of getting theirs! Your child is probably so excited to no longer rely on you to drive them to practice or to their friends' houses, but they should also know becoming a new driver comes with great responsibility — and added costs.
According to the CDC, teen drivers represent 6.5 percent of the U.S. population and about $13.1 billion — almost 8 percent — of the total costs of vehicle injuries. Younger drivers are typically more expensive to insure because they don't have a solid driving record and less experience, leading to more accidents than seasoned drivers. Adding a teenager to your auto insurance can be costly, but there are several ways to minimize the financial impact of a young driver.
Complete Driver's Education
Before your teenager takes their driving test, have them complete both classroom and on-the-road training. Parents with teen drivers who have completed a driver's education course see an average savings of $170-$240 on auto coverage. The discounts they receive are well worth the time in the classroom, and your teenager will gain more experience behind the wheel.
Driver's education is often available at your teen's school, and many community programs offer driver training as well. Additionally, some insurance carriers may offer discounts up to 10 percent for students with good grades. Check with your auto insurance provider to see if your teenager qualifies for a good student discount.
Create Rules for Driving
Before allowing your teenager out on the road, have a conversation with them about expectations for driving a car. Some guidelines you can put in place can include:
- Rules on where and when they can drive the car
- Rules on the use of seatbelts for all passengers
- Restrictions on cell phone use behind the wheel
- Requirements of maintaining good standing at school
- Limiting the number of passengers in the vehicle
To get started or for inspiration, ask our experts for Keller-Brown's "Family Auto Use/Rules Agreement," which you can use as a basis for your teen's driving guidelines.
Maintain a Safe Driving Record
As your teen prepares to get behind the wheel, they should know how they drive now can impact their auto insurance in the future. One accident on a teen's driving record could make them an at-risk driver, raising their insurance premium on average 30 percent. Teenagers are generally affected most by premium increases, but even the most experienced drivers will pay more for auto insurance because of accidents, tickets and more. Having a safe driving record reduces the chance of paying more for coverage.
Save Money through Bundling
Most providers recognize customers need more than one specific line of coverage, and bundling makes it more affordable to insure multiple types of policies. Bundling, also known as a multi-policy discount, is when you purchase multiple types of coverage like auto, home or life from the same insurance provider.
When the time comes to insure your teenager as a driver, consider bundling their auto policy with your existing coverage. You may see significant savings to offset the cost of adding auto insurance for your teenager.
If you are interested in bundling your policies, get in touch with your agent now and see how much you could save!
Shop for Coverage Beforehand
Take your time and do your homework. You may qualify for lower rates even before you add a new driver to your auto insurance policy.
Additionally, it's often cheaper to add your teenager to an existing auto policy rather than a brand new policy. There are several ways to add your teenager to existing policies:
- Add your teenager to your policy if they live in your household and the vehicle is titled to you or if it is co-titled to one parent and the child. Co-titling will allow carriers to add the new driver to an existing policy to keep rates lower vs. insuring the new driver and their car on a separate policy.
- Add your teenager to the policy with the vehicle they will be driving.
- If their parents are separated, add your teenager to the policy of the parent with whom they reside the majority of the time.
Remember, when purchasing an additional car, older model vehicles will be less expensive to find auto coverage for compared to newer models.
We're Here to Help
Putting your teen on the road for the first time can be scary, but there are many options to minimize the impact of adding your teenager to your auto insurance policy. If you're in the market for auto insurance for your teenager, Keller-Brown Insurance Services can do the shopping for you! As independent insurance agents, our auto experts can save you time and make the process as seamless as possible.
Know someone with a young driver? Refer them to Keller-Brown Insurance through our "New Driver Referral Program" so everyone can benefit! You can receive a $10 gift card for every new customer referred — just have them mention your name when they speak to one of our agents or submit an application for coverage.
If you have any questions, contact Keller-Brown Insurance Services today by visiting www.keller-brown.com/contactus or calling (717) 235-6891.