How To Insure Teen Drivers

Get The Right Coverage for Teen Drivers

Many parents worry when their kids become first-time drivers. You may be concerned about your teen driver’s safety when they’re behind the wheel, along with the safety of your other children if they ride in the same car. Adequately insuring your teen driver is key to being protected financially in the event of an accident.

While getting affordable auto insurance for teens is important, it’s also important to make sure you have enough coverage to make up for the risk of adding a teenage driver. It’s a balancing act! Navigating the details of adding a teenager to your policy, getting the best price and ensuring you have the amount of coverage you need to support a teenage driver can be tough.

If you’re located in Missouri, Kansas, Arkansas, or Iowa, David Pope Insurance Services, LLC, can help. We’re a local, family-owned insurance firm with more than 20 years of experience. If you’re anticipating adding a teen to your policy or are interested in shopping around for a better deal on auto insurance, get started by requesting a quote on our website.

Perhaps the best time to start the process of obtaining insurance is before your teenager has their learner’s permit. Speak with your insurance broker about car insurance for young drivers and the average full coverage rate for teens after they become licensed. Your policy may automatically cover your teen driver while they drive with a learner’s permit, but you may want to check with your broker to be sure.

After your child is licensed, reach out to your insurance provider about your teen’s need for coverage and add your teen to the policy.

What To Consider When Searching For Teen Insurance

Several factors can affect the cost of teen auto insurance:

Vehicle type: Every auto insurance company will charge a higher rate for a teen that is driving an expensive vehicle. Luxury cars cost insurers more money to repair after an accident. You can save money by providing your teenager with a cheaper — but safe — used model. You might also be able to forgo comprehensive and collision coverage on an older vehicle, which can make a big difference in the premium.
Driving record: Your insurance will increase even more if your teen has an accident or a violation such as speeding, careless driving or running a stop sign. You should ride with teenagers periodically after they’ve attained their license to make sure they are obeying the rules of the road. Keep reminding them about the dangers of texting while driving and operating a vehicle while drunk.
Grades: You can save money on insurance if your teenager is a good student — some insurers offer a significant discount for maintaining at least a B average.
Driver ed: Your teen may also earn an additional discount if he or she completes an accredited driver education course that includes a specified number of behind-the-wheel instruction hours.
Separate policies: Explore whether it’s more expensive to add your teen to your plan or have them purchase individual coverage. The latter option is usually more costly, but it also shifts the burden and responsibility to your teenager — you won’t face a premium increase on your policy if your child has an accident.

In most cases, adding your teenager to your policy may be cheaper than your teenager purchasing their own policy. A teen car insurance policy may be significantly more expensive, as first-time drivers are seen as a greater risk than those who have been driving for years. If you are dissatisfied with the quote you receive from your insurance company, it may be the time to shop around for coverage from other insurers. You can also inquire about possible discounts that can help mitigate the cost of teen car insurance.

Why You Should Shop For Insurance With A Teen Driver

If you’re in the market for teen auto insurance, get ready for a case of extreme “sticker shock!” When you add a new teenage driver to your policy, your premium could jump by as much as 90 percent. Insurance companies know that teens do not have the experience — and, in some cases, the sound judgment — to drive safely at all times. Consequently, most insurers charge higher rates to account for the increased number of claims that typically occur with teen drivers.

While Missouri tends to be reasonably “middle of the road” regarding teen car insurance costs, you’ll still likely see a significant rate increase when you add your son or daughter to your policy. Taking the time to shop around for insurance can often allow you to find new coverage at a much more affordable price.

Finally, speak with your teenager about the importance of safe driving and monitor their driving. Ensure they don’t text and drive and that they obey speed limits and traffic laws. There are apps and devices you may want to consider using to track your teen’s driving habits. Apps can log trips and track phone use while your teen is driving, along with speeding and aggressive handling.

Monitor & Encourage Safe Driving

What could make insurance costs for teens even higher? Speeding tickets and car accidents. Teaching your teen to be a cautious and mindful driver is an investment in cheaper auto insurance, but also in other out-of-pocket expenses. Adding telematics to your car is one reliable way to achieve some real-time savings, but the long-term investment comes with a conversation about safe driving. Over time, remaining ticket- and accident-free saves you a significant amount of money. In some cases, it may make sense to delay getting a driver’s license to ensure your teenager has had enough practice and understands the need for being a safe driver. However, it’s important to balance that with not letting our fears get in the way of our teenager’s learning and experience on the road.

Does your teenager know your expectations for safe driving? Does he or she understand a speeding ticket or car accident will raise the cost of insurance? Does your teen know how a deductible works? Much of your focus has probably been on educating your teenager on the do’s and don’ts on the road, which is essential to their driving experience. However, it’s equally important for them to understand some of the basics about auto insurance, and the responsibilities that come along with driving. Getting a car insurance discount can be in their hands.

Commonly Asked Questions

Should I Add A Permit Driver To My Insurance?

You may want to add your teen driver to your insurance, even if they only have their permit. Your teenager will be using your vehicle, and while they are behind the wheel, they could be in an accident. Someone who is just learning to drive could be a riskier driver, which means you may want to take all the precautions you can.

Car insurance follows vehicles, not drivers. This means your insurance should cover cars that are driven by those in your household, including drivers who have learner’s permits. In some cases, you may not have to add a permit driver to your insurance, as they may be covered automatically. To be certain, you may want to add the permit driver to your policy as an operator.

Usually, your insurance rate won’t increase with the addition of a driver with a permit, as it is assumed they will be driving only with supervision. The increase in your rate tends to come when your teen obtains their license and can drive without your supervision.

As soon as you add your teen driver to your car insurance policy, they will begin building an insurance history. This can help them save on auto insurance rates down the road.

Are Teen Drivers Eligible For Discounts?

It may seem crazy that there would be discounts for the highest-risk age group when it comes to driving, but you might be pleasantly surprised by what you find. Contact your current auto insurance carrier and ask if they offer any incentives. Here are some of the common teen auto insurance discounts offered by a variety of companies:

Driver safety course: If your teenager enrolls in and passes a driver safety course, it can be an easy way to save on teen auto insurance. You and your insurance company get additional peace of mind knowing your son or daughter is educated in safe driving, and you get the added perk of a reduced cost. Both in-person and online options usually exist, making these courses accessible.
Good grades: Other insurance companies have been known to offer discounts for good grades — and not all of them are just for straight-A students. Instead, many offer perks for students who maintain a B average. Don’t forget to send proof of good grades each year, as these discounts often expire without notice. Many of these good-grade discounts extend through college, too.
Away from home: If you have a teenager in college far away from home and without a car, you may be able to get a discount since your teen isn’t driving regularly. The distance may vary from insurance company to insurance company, but we’ve seen discounts offered for teens that are located at a college or university 100 miles from home.
Safety features discount: If your teen will be driving a car with safety features, this may qualify you for a discount. Safety features may include anti-lock brakes, anti-theft devices and adaptive cruise control. Speak with your insurance agent to find out what safety features may qualify you for a discount.

Should My Teen Driver Have Their Own Policy?

Adding a teen to your policy can cause your premiums to increase.

If you have a teenager in your household who is starting to drive, they need insurance coverage. The question then centers on whether they should get their own policy or be added onto yours. If they’re only driving one of your vehicles, then you should add them to your policy. Even if they got their own vehicle, it’s almost always a better idea to add your teen onto your policy rather than have them purchase their own policy.

Adding your teen to your policy could easily cause your premiums to go up by as much as 90%. While this may seem like a lot, getting a separate policy for your teen will cost even more. Some parents may still want to consider getting a separate policy for their teen to protect their own premiums from increasing, especially if their teen gets into an accident. However, you will still be connected to your teen’s separate policy since they can’t enter into a contract on their own if they are a minor.