Teen Driver Insurance: Answers to 10 Common Questions Parents Ask
Handing over the car keys to your newly licensed teen driver can be both exciting and nerve-racking. Seeing your child learn to drive is a major milestone, but also comes with added risks. On average, teenagers are typically more likely to get into car accidents than experienced drivers. That's why it's important to have the proper car insurance coverage before your teen hits the road.
1. What is the best car for a teen driver?
When considering a car for your teen driver, try to avoid sports cars, high performance cars, or luxury vehicles. These may not be safe for new drivers and tend to have higher repair costs.
2. Should I add my teen driver to my car insurance or should they have a separate policy?
Whether your teen driver needs to be added to your policy or have their own depends on who the owner of the vehicle is.
- If your teenager drives your vehicle, they should be added to your car insurance policy.
- If your teenager is the sole owner of the vehicle they drive, they should have their own car insurance policy.
- If your teenager co-owns the vehicle, some states allow them to remain on the same auto policy if listed as an additional interest.
3. How do I add my teenage driver to my car insurance policy?
Notify your insurance agent as soon as they obtain a learner's permit so that they can be added to your policy once they receive their driver's license.
4. How much coverage do I need for my teen driver?
How much car insurance coverage your teenager should have is a personal decision. But as a general rule, teen drivers should typically maintain the same coverage limits as their parents.
5. How much does it cost to add a teen driver to my insurance policy?
Adding a teen driver to your auto insurance policy will typically increase your premium because they have less driving experience and are statistically more likely to be involved in an accident. The exact cost depends on factors such as your teen's age, driving record, location, vehicle, and coverage levels.
The good news is that many insurance companies offer teen-specific discounts for new drivers. Ask your insurance agent if there are discounts you may qualify for.
6. What happens when my teen goes to college?
Some insurance companies may offer a discount (i.e., the Student-Away-at-School Discount) if your teenage driver is away at college and only occasionally drives your car.
7. What happens if my teenager gets into an accident while driving my car?
Unfortunately, accidents happen. So, it's important that your teen driver knows exactly what to do if they get into one. Talk to your teenager to make sure they understand the proper process to follow immediately following an accident (e.g., call 9-1-1, exchange information, take pictures of the accident scene, etc.).
If your teenager is an active driver on your policy, they are fully covered if they get into an accident. If your teenager is not an active driver on your policy, it may negatively affect your car insurance policy. In certain situations, parents may be held financially responsible if their teen driver causes an accident.
8. What happens if my teenager gets a ticket while driving my car?
If your teenager is on your car insurance, any traffic violations they incur will be applied to your policy and may affect your rate at renewal. Also, depending on what state you live in and the type of violation, your teenager may be at risk of losing their driver's license.
9. Can my teen loan out their car to a friend?
From an insurance standpoint, that decision is up to you. Talk with your teen about whether they're allowed to lend out your vehicle and establish any rules beforehand. However, there's one important thing to keep in mind if your teenager is on your car insurance policy. If your teenager lends out your vehicle and the driver gets into a car accident, your insurance rate may go up.
10. Can my teen have other people in the car while they are driving?
Passenger restrictions vary by state. Some states place restrictions on the age of the passenger and/or hours when a passenger may be present.
Still have questions? Contact your local Comparion Insurance agent. They can walk you through everything you need to know and get you a great price on car insurance.
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