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How to Effectively Insure Your New Teen Driver

Now that your teen is old enough—and finally legal—to drive, it's time to take the matter of their auto insurance seriously.

Being able to finally drive is a significant rite of passage for them. Their excitement is palpable, as they can't wait to be perpetually on the road, taking every opportunity to show off their driving skills.

As a parent or guardian, you must take steps to manage potential excesses with a car insurance policy, as their inexperience makes them likely to be involved in accidents.

When should you get auto insurance for your teen?

You can start by adding your teen to your existing insurance policy. However, you’ll have to conduct some research before the time comes.

For instance, you'll have to check your local laws to know when to add them to your coverage. For instance, your teen may require insurance as soon as they get their learner's permit, while you can sometimes wait until they get their driver's permit. 

You'll also have to consult your insurance agent to know the cost of adding your teen to your policy and when it is possible to do so.

Should you purchase a separate policy for your teen?

If your teen owns their car and lives with you in the house, it may be more cost-effective to add them to your policy. However, it may be cheaper to consider getting them a separate policy because insurers often assume that they'll drive the family vehicle now and then, even if they have their own car.

Costs can also go up if your teenager has received a lot of moving violations or has been involved in multiple accidents. In fact, such instances could result in you losing your policy altogether. 

For this reason, it may be wiser to get them their policy, even if it's expensive. However, in the long term, it can reduce the cost of their insurance and allow you to maintain your policy at standard rates.

How to add your teen to your insurance policy

For this, you'll have to speak with your insurance agent to understand the cost implications as well as the exact coverage that your teen will require. 

You can either check online or get quotes from at least three insurance companies to see which one best suits your needs and your pocket.

Tips for saving money on teen insurance

If you have a teen driver who's just got their driver's permit, here are some tips to help you save money on their insurance policy:

  • Driver training discounts: As teenagers are inexperienced drivers, many insurance agencies offer discounts if they've completed a driver training program

  • Be an A or B-student: Good grades aren't only good for getting into college; a teen on a dean's list or honor roll can also get reduced rates from insurers!

  • Choose the right car: Instead of getting them new wheels (which will make them more likely to overspeed), consider having them use the family car. The more expensive the car, the more expensive it will be to repair and the higher the premium.

  • Delay getting them their driver's permit: If you feel your teen doesn't need to get on the road straight away, or you're on a tight budget, you can delay getting them their driver's permit and have them use the public transport system. 

Find the right teen insurance at the lowest rates

With teenagers, it's all about finding a balance between their new-found excitement and desire to be on the road and comfortably paying the insurance costs that come with it. 

If you're unsure whether to get them a separate policy or lump them together with yours, speak to our experienced agents at T4 Insurance Solutions for expert advice. Schedule a consultation today. 

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