Learning to drive is exciting for teens, but having a new driver in the family can be stressful for parents. If your teenager has recently gotten a driver’s license or learner’s permit, or will soon, you’re probably thinking about how that will affect your auto insurance coverage and rates. Here are some things you should know.
You Can Add Your Child to Your Current Policy
You can have one car insurance policy that covers your entire family, or you can take out a separate policy for your teen. Insuring all drivers on a single policy is usually the more affordable option.
Teenagers are statistically more likely to get involved in accidents than adults. That can be due to a lack of experience, as well as speeding, distracted driving and other factors. Premiums for young people are therefore higher than they are for adults with good driving records.
Adding your child to your current auto insurance policy will cause your premiums to go up, possibly by a significant margin. Still, adding your teenager to your existing policy will probably cost less than it would to take out a separate policy for your child.
You Might Be Eligible for Discounts
Adding a teenage driver to your auto insurance policy won’t necessarily cause your rates to skyrocket. Car insurance companies offer discounts to make premiums more affordable. If your child is a good student, you might enjoy significant savings. Insuring multiple vehicles on the same policy and bundling your auto and homeowners insurance can also save you money.
Other factors, such as the type of vehicle and where you live, can also affect your rates. As your child gets older, gains more experience and maintains a clean driving record, your premiums will most likely start to go down.
You Might Want to Raise Your Liability Coverage
Now is a good time to review your liability limits and figure out if they’re high enough. If your teenager gets into an accident, someone gets seriously injured and your current policy doesn’t have high enough limits to cover the bills, you can get sued. Increasing your liability coverage can protect your house and other assets.
Get the Right Car Insurance Coverage for Your Family
Make sure that you have auto insurance in place before your child gets behind the wheel. Contact your car insurance company or agent to tell them that you will soon have a new driver in the family, find out how adding your teenager would affect your rates, ask if you qualify for discounts, and discuss whether you should modify your coverage.
