Car Insurance and Change in Life

It’s the moment every teenager anxiously awaits- and every parent feels has come too soon. It’s the day your teenager gets their driver’s license.

By this time, you have hopefully already spent hours behind the wheel with your teen practicing the best driving tactics and safety tips. However, before you send them off on their own behind the wheel, you should consider your auto insurance coverage.

Any time you have a new driver in your household, it is your responsibility to add that person as a driver on your car insurance policy.

Just as you would add a new spouse to your policy because you now share a home, you must add your newly licensed teenage driver to your policy as well. Because they are licensed, and have access to your vehicles, they need to be included on your policy in order to provide coverage for accidents that could occur while they are driving.

Rates for teenage drivers are often high because of the lack of experience they have on the road. So, you may see a considerable increase in your auto insurance premium after adding them to your policy. Typically, a new driver must be licensed for 3 years before they are eligible for an Experienced Driver Discount which you are most likely already taking advantage of. However, there are other discounts that young drivers may qualify for. For example, most auto insurance companies offer a “Good Student” discount if your teen maintains an A-B average in school. Be sure to ask your insurance company about the specific discounts they offer for new drivers.

We understand the apprehension that goes along with sending your child out on the road by themselves for the first time. You might want to consider having your child sign a Teen Driving Contract which can help lay the ground rules- and consequences for breaking them- while behind the wheel.