Insuring a New Teen Driver

Did you know teen drivers are four times more likely to crash than drivers over 20? According to data from the Insurance Institute for Highway Safety, immaturity leads to risky driving, and inexperience makes it hard for teens to handle hazards. Unfortunately, this higher risk also means higher insurance costs. But don’t worry—there are ways to insure your teen without spending too much.

How to insure your teen driver

Adding your teen to your current policy is usually cheaper than buying them a separate one. To avoid surprise costs, it’s a good idea to plan for your new insurance needs before your teen gets their driver’s license. Research when you’ll need to add them to your auto insurance, as it varies by state.

“Some states require insurance as soon as the teen gets a learner’s permit, while others only require it once the new driver is fully licensed,” says Frankie Torres, insurance agent with AAA in Toledo, Ohio. Although some insurance companies let you add a teen with a permit for free, not all do.

Reach out to an insurance agent at your local AAA Store to explore coverage options for your teen. They can help you find discounts, such as savings for bundling your policies or for your child completing a driver safety course or maintaining a strong GPA.

Lastly, Torres advises, don’t forget to review your auto liability limits and consider adding a personal umbrella policy for extra protection.

Saving more

Here are a few other tips to help you save money.

Use a family vehicle. Instead of adding another car to your policy, have your teen use one of your current vehicles as a secondary driver. It’s often cheaper than listing them
as the primary driver.

Increase your deductible. Raising your collision deductible can lower your monthly premium. Just keep in mind that you’ll pay more out of pocket if there’s an accident.

Consider your car choice carefully. When insuring a teen driver, factors like the car’s age, make and model play a role in the insurance cost. Used cars usually cost less to insure than new ones since they have lower values and the cost to repair or replace the car is usually less. When it comes to types of cars, minivans, sedans and SUVs typically have the lower premiums for teens. When car shopping, check insurance rates at the same time to find the best option.

With some research and planning, you can find the right policy to fit your family’s needs.