So, your teenager is preparing for their driver's license test. You might be feeling both excited and scared. Trusting your child to use their judgment in a car, alone, on public roads is scary. On the other hand, they finally have that independence to drive themselves around town to get where they need to go. Even with mixed feelings, one thing should be certain. They need to be insured.
The Risk of Teenage Drivers
According to the CDC, teen drivers represent 6.5% of the U.S. population and about $13.1 billion, or almost 8%, of the total costs of motor vehicle injuries. Because of this, you need to expect a premium increase when adding your teen driver to your auto policy. There's no way around it. Adding a young driver is pricey. In fact, it's one of the most common times people shop for different insurance.
Adding a Teen Driver to Your Policy
All companies handle teen drivers differently with how they rate and spread out the increase. For example, they may assign a higher rate to a vehicle that isn't assigned to the teen driver. Why? It's just how it's done. Just expect they're going to get their pound of flesh...and they all extract it differently. If you're close to adding a young driver, you can call us and we'll do the shopping for you. It's ok to ask us to shop! It's one of the benefits of being a customer of an independent agent. Also, since we have most of the information, it saves you time.
When to shop:
A good time to shop for rates is before you add the young driver. Why? You may qualify for preferred rates without an inexperienced operator, so when it comes time to add the driver, while there is an increase, it might not be as bad as if you had waited to shop with a young driver.
What policy should they be added to?
- In most cases it is cheaper to add the child to your policy. They can be added to your policy if they live in your household and if the vehicle is titled solely to the named insured, or if co-titled to one parent and the child.
- When parents are separated, we typically advise adding the driver to the policy with the vehicle they will be driving. If they drive vehicles owned by both parents, they should be added to the policy of the parent with whom they reside the majority of the time.
- Some parents want their child to have their own policy for several reasons. We can do that, too, but in most cases it is almost always more expensive for a new driver to be on their own policy.
What type of vehicle is best?
We don't have a black and white answer. Here are some things to consider:
- Older vehicles
- You could have significant savings if the vehicle for your teen doesn't require comprehensive and collision coverage. Many people don't have comprehensive and collision on older vehicles.
- Newer vehicles
- Conversely, newer vehicles often come with better safety features. And, newer vehicles typically carry comprehensive & collision. Safety features in a vehicle don't always equate to a lower premium because they are more expensive to repair.
When it comes to the vehicle type, you'll need to weigh what's best for your family and budget.
Discounts:
There are different discounts that can be earned. Here are a few:
- Have your child complete BOTH classroom and on-the-road driver training. The Driver Training discount is well worth the time spent, and your inexperienced driver will become a safer driver. Classroom and on-the-road training are sometimes available at your child's school. If not, there are third parties that offer this valuable training.
- Some insurance companies offer a discount for good students. If your child is an honor student, please send their report card and we will add available Good Student Discounts.
- This is no loyalty discount just for adding a driver. When a company offers that discount, it applies to the entire policy.
- Companies do offer a discount for students away at school without a vehicle. The number of miles varies, but most companies typically say the school must be at least 100 miles away to qualify for the discount.
Conclusion
Putting a new teen driver on the road can be a scary reality, but surely you will provide the best training and guidance so that they can become a great driver. Ensuring your child has the right coverage will hopefully put your mind at ease. Because young drivers pose a higher road risk, there are certain things to keep in mind about your policy. Independent insurance agents are here to do the shopping for you, save you time, and make the process as seamless as possible. If you have any questions or have a teenage driver, please contact us so one of our auto specialists can help.