When Should You Get Car Insurance for Your Teen?
Your Teen is Starting to Drive. Now What!
When should you get car insurance for your new teen driver?
As soon as they start learning to drive, whether they are starting with a learner’s permit or going straight to the license, you should inform your auto insurance company to have them added to your policy. This is the best way to provide the best protection for your assets and usually much more cost-effective than placing them on their own policy, especially if you are a safe driver with a clean record. Depending on your auto insurance company, they may nor may not rate them while they have their learner’s permit. Some companies may not charge a premium for the the new driver until they get their full driver’s license. But the main point here is to inform your company that your teen is starting to drive. Failing to do so can be determined as a material misrepresentation and cause problems should their be a claim.
Statistics show that teens are more prone to auto accidents than those in other age groups, so starting out with the right amount of auto insurance coverage is extremely important. Plus, it is also important to have them added as a driver on your umbrella insurance policy as well. Because if they are involved in an auto accident while living with you, you most likely will be a party to a lawsuit as well.
When your child goes away to college, unless they are taking a car with them, you will probably want to switch them to “occasional drivers” under your policy. Some other considerations:
- You may qualify for a multi-vehicle discount if your child’s car is covered under your policy.
- You may also qualify for a discount during the time your child is away at college (usually 100 or more miles away without a vehicle).
- Encourage your child to earn good grades, and take a driver training course. Some insurers offer a nice discount due to good grades, and for completion of training courses.
- Serve as a good role model; your child will learn by example, so it is important to demonstrate good driving habits early on (i.e. not texting or talking on the phone, using seat belt, not drinking and driving.)
For more information, please check out our research page on Teen Will Drive Soon.