So, the time has come for your child (who's not really a child anymore) to hit the open road. There's a lot to consider when handing over the keys to your new driver. Let us help guide you along the way, so you can get the right car insurance for the right price.
Starting a new policy or adding a driver to your current policy
One of first questions many parents ask is whether they should add a teenager to their policy or start a new policy just for them. There is no universal answer to this question. Much depends upon whether the youngster has their own vehicle, what laws apply to parental responsibility for the teenager’s operation of a vehicle, and the limits that the family has in effect and wants for their child. In general, it is cheaper to add the new driver to your existing policy. However, there are numerous exceptions to this rule, and asking for a quote each way is a good way to compare the various scenarios.
Saving money with your teen driver
Even though adding your teenager to the driving world will add to your costs, there are several ways to help ease the pain:
- Multi-car discounts – If your teenager has his/her own car, adding that to your policy might make you eligible for a multi-car discount, which helps defray the cost of new coverage
- Good student discounts – some states allow for discounts for students who achieve certain levels of good grades in school. It’s also an excellent way to keep your teenager out of the car and in the books!
- Driver improvement course discounts – some states allow for a discount if the young driver completes a driver improvement course (in addition to the basic driver education and training courses required for a driver’s license). Discounts are often available to parents above a specified age for the same types of courses, so Mom & Dad need to check into that as well.
- Select a “sensible” vehicle for your youngster. That safe sedan will be much cheaper to insure than the snazzy convertible.
- Be realistic in your physical damage coverage. If the vehicle is old, it may not be worthwhile to maintain physical damage coverage on the vehicle. If you do have that coverage, consider a larger deductible to reduce your rates.