Stay in the Driver’s Seat When Adding a Teen to Your Policy

Few things frighten parents more than the prospect of their teen starting to drive. You have to worry about teaching that son or daughter to drive and riding with him or her until the lessons start to sink in. You have to worry when they go solo for the first time. You have to worry about whether your teen will speed, or text or otherwise be distracted behind the wheel and hit a mailbox or something.

And you have to worry about the expense of adding that teen driver to your auto insurance policy. It’s no secret that teenagers pay higher rates for coverage. It’s for good reason, or course. Teens have much higher accident rates than more mature drivers.

However, there are ways that you and your teen can work together to reduce just how much extra it will cost to have another driver listed on your policy. First, many carriers offer discounts for adding teen drivers to help ease some of the added cost to your premium. Some other ways to cushion the impact include the following:

• Good grades always pay off: Many carriers offer discounts to student drivers who have and maintain good grades, usually a B average or better in high school or college. This is for full-time students between the ages of 16 and 25.
• Demonstrate a commitment to safety: Lots of carriers offer price breaks for drivers younger than 21 who complete an approved driver-safety course.
• Out of sight, not out of mind: Dependents younger than 25 who attend school at least 100 miles away qualify for discounts from some providers.
• Monitoring devices: Some carriers offer policyholders the option of installing devices that monitor driving and reward safe practices.

The availability of these discounts varies by state and carrier, so ask your agent before assuming that any of them could apply to you and your teen.

But rate changes and discounts aren’t the only matters you have to think about as your teen begins driving. Following are some other things you should consider:

• Collision coverage: This type of coverage protects you in case your car hits something else, including another car. Animals are excluded, however. If your teen driver hits that mailbox, for example, and causes damage to your vehicle, collision coverage will kick in for the repairs once you meet the deductible. Collision coverage isn’t required by law, although most lenders will require you to have it before they give you a loan for the vehicle. If you don’t have it, now might be a good time to add it.
• Roadside assistance: You might be confident in your ability to change a tire in case of a blowout, but are you sure Junior or Missy can do it? If not, you might want to add this coverage to your policy to make sure he or she isn’t stranded in case you’re not available. Before you do this, however, make sure you don’t already have coverage through your warranty or through a service such as AAA.
• Increase liability insurance: Now is a good time to reconsider your liability limits. If your teen driver causes a wreck and injures someone or damages property (other than your car), this type of coverage can help cover the costs. Liability insurance is required in every state, but the limits differ. Make sure your limit is adequate for your household.
• Bundling with home insurance. If you’re still suffering from sticker shock over the increase in your premium, there could be discounts unrelated to your teen. One of the most lucrative is the auto/home bundle, in which you buy home and auto insurance from the same carrier. Most providers offer savings of up to 20% for this combo. There could be other discounts as well that you’re not taking advantage of. Ask your agent to investigate.

Getting your teenager on the road doesn’t have to be scary. Communicate with your teen, teach him or her the rules of the road and be patient when he or she makes a mistake. You – and your teen – can survive this.

Source: AutoInsurance