When your teen gets their driver’s license, it’s both an exciting and stressful moment for everyone involved. While their newfound independence is worth celebrating, it also brings important responsibilities, including ensuring they are properly covered by auto insurance. Adding a teen driver to your policy is an important step in maintaining both their protection and your family’s financial security.
Here’s what you should know about adding a teen driver to your auto insurance:
Why It’s Important to Add Your Teen Driver to Your Policy
As a parent, one of the most important steps you can take when your teen starts driving is to make sure they are properly insured. Due to their inexperience and higher likelihood of being involved in accidents, teens are considered high-risk drivers by insurance companies. Adding your teen to your auto insurance policy guarantees they are covered in the event of an accident and helps you comply with state laws. It’s usually more cost-effective to add them to your existing policy than to have them take out their own.
If your teen were to drive without insurance, you could both face legal and financial consequences in the event of an accident. For example, your current auto policy may not cover damages if your teen is involved in a crash and not insured on your policy, leaving you personally responsible for repair costs, medical bills, and other expenses.
How Adding a Teen Driver Affects Your Premium
Adding a teen driver to your policy often results in higher premiums. Teen drivers are statistically more likely to be involved in accidents than older, more experienced drivers. In fact, the CDC reports that teens aged 16-19 have a fatal crash rate almost three times higher than older drivers, per mile driven.
Several factors influence how much your premium will increase, including:
- Age: The younger the driver, the higher the premium due to inexperience and risk.
- Gender: Males under 18 are statistically more likely to get into accidents than females, which can result in higher premiums for male teen drivers.
- Driving record: A clean driving record for your teen can help keep your rates down. Conversely, any accidents or traffic violations may lead to higher premiums.
- Car type: The type of vehicle your teen drives can also affect premiums. Sports cars, luxury vehicles, or older cars with high repair costs often result in higher premiums.
Save Money with a Good Student Discount
Many insurers offer discounts for teens who maintain good grades. Typically, a GPA of 3.0 or higher will qualify your teen for this discount. Talk to your insurance agent about available discounts and if your teen qualifies.
Types of Coverage You Should Consider
When adding a teen driver to your policy, it’s important to evaluate your coverage to ensure your teen is properly protected. Here are some types of coverage you should consider:
Liability Coverage: This is essential coverage that helps pay for injuries or damage your teen causes to others in an accident. In many states, liability coverage is mandatory, but it’s worth considering higher limits for added protection.
Collision Coverage: Collision coverage pays for repairs to your teen’s car if it’s damaged in a collision. If your teen is driving a new or expensive car, this coverage can help protect your investment.
Comprehensive Coverage: Comprehensive coverage protects against damages caused by incidents other than collisions, such as theft, vandalism, or natural disasters. If your teen drives a car with significant value, comprehensive coverage can offer peace of mind.
Uninsured/Underinsured Motorist Coverage: This coverage protects your teen if they’re involved in an accident with a driver who doesn’t have enough insurance or any at all. Since not all drivers carry adequate insurance, this coverage is a wise investment.
Adding a teen driver to your auto insurance policy is an essential step in ensuring that your child is protected on the road and that your family’s financial security is maintained. While adding a teen driver can increase your premium, there are ways to manage costs through a good student discount and encouraging your teen to practice safe driving habits, keeping their driving record clean.
Contact your local Farm Bureau Insurance agent today. They’ll be happy to assist you in adding your teen driver to your policy and making sure they have the coverage they need as they hit the road.
Disclaimer: The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts.
