Adding New Teen Drivers To Your Auto Policy

What Will Increase Premiums and How To Avoid It While Still Protecting Your Teen Driver

If you’re a parent and you’ve finally reached that point in life where you have to add your new teenage driver to your policy, you’ve probably experienced at least one headache by now and have discovered this it’s not exactly something you look forward to. It often seems as though it’s completely impossible to find affordable rates for teen drivers, however, with a bit of research and being armed with some information, you can find affordable auto insurance for teen drivers. With the right tools, you can easily be guided to finding some affordable rates for new teen drivers and get a decent deal on auto insurance premiums for your new teen driver. After all, you’re not only concerned with finding the right premium, but you’re also concerned with finding adequate coverage for a teen driver without sacrificing any important coverage that’s essential to any driver, and especially for new drivers who typically carry a higher risk of accidents, claims, and violations.

Parents Own Driving Record and History Helps Alleviate Increased Premiums

There are some built in advantages when adding a new teen driver to an auto policy. Once you’re aware of the factors that go on ‘behind the scenes’ when an insurance company is calculating premiums for new drivers is beneficial and will allow you to utilize the benefits of adding a teenage driver to your own policy. Some of the built in positive factors and discounts that you may already be receiving will surely help keep your rate lower even when a new teen driver is added:

Good Driving Records and Claim Free History

Since parents typically have a longer driving record, particularly if they’re already receiving low rates due to the fact that they have an extensive driving record and have years of driving experience, this will help soften the blow once you see your premium increase upon the addition, which will inevitable happen no matter what. Furthermore, if you have a great driving record and years of being claim free, accident free, and violation free, you’ll find that adding a teen driver is going to be much more affordable than expected.

Long Term Customer Discounts

Many companies offer a long term customer discount, meaning if you’ve been with the same insurer for years without any lapses, this is one of the discounts that you not only receive, but that are often automatically given to your teen driver. Additionally, it’s worth knowing in the future that when your teen driver starts to get a policy on their own in the future, many insurance companies will automatically give the teen driver the same discounts you had on your policies.

Factors That Can Negatively Impact The New Premium When Adding A Teen Driver

If you’re a parent and you’ve bought a vehicle for your teen using a loan, then you can typically expect to pay a higher premium. So before you do, keep the following ideas in mind when not only preparing to get insurance for the teen, but also while you’re picking out the car for a teen.

New Drivers Are At A Higher Risk For Having Collision Accidents

When you’ve purchased a car for a teen driver and have a loan on the vehicle, it’s worth considering that new drivers are more likely to be involved in a collision accident, which means you are definitely going to need to purchase the best collision coverage you can; usually meaning you need to have collision deductibles set at reasonable amounts, such as anywhere between $100 and $500, and you’ll also want to carry the highest property damage limits that you possibly can (these limits are usually available up to around $500,000 on most policies). Since collision coverage and property damage coverage will pay if the teen has an accident and is liable for it, you’ll want to make sure they’re adequately covered. Obviously, the more coverage you carry, the higher your premium, but remember that it could end up saving a fortune in the long run; and also protecting your assets.

Buying A Vehicle With A Loan or Leasing A Vehicle

Whenever you buy a vehicle with a loan or under a lease agreement, the lender is going to require that you carry a certain deductible amount for collision and comprehensive so that they’re guaranteed the vehicle can be fixed or paid for in the event of an accident. Of course, buying a vehicle with a loan or a leased vehicle means you’re probably buying a newer car, which means you’ll have to carry the coverage with a certain deductible (usually around a $500 deductible), leading to a higher premium, especially because you can’t simply opt for a higher deductible. However, if you buy a vehicle without using a loan or lease, or if you buy an older vehicle that is cheaper to repair or replace, then you can get away with carrying liability only coverage, which can save you hundreds. Doing this will translate to less risk on the insurance company’s behalf and thus will translate to a lower premium.

If you’re armed with the right information and know how to sensibly make the right choices, outweigh the costs,, and still maintain great coverage for your new teen driver, then you can make the decisions that will help you avoid paying higher rates and that will give you a lower rate, but at the end of the day, the most important thing is choosing coverage that will protect your teens and teach them what they need to know about insurance, and if you can do so while also saving money, you’ve accomplished quite a bit.