When your teenager reaches the age of 16 and is preparing to get a driver's license, you will need to prepare for insuring this teen, if he or she will be driving your car or a car you purchase for him or her. Insuring a teen driver is never a cheap event in life, but it is a necessity, and there are ways you can save money. Here are three important things to understand about insuring your teen driver.
You should be ready to insure your teenager
In most states, teens will hold driving permits for numerous months before getting an actual driver's license. When your teen has a driving permit, you typically do not need to add him or her to your policy, but you will need to do this when the teen gets his or her license. You should aim to contact your insurance company on the day your teen gets his or her license, and you should have the license number ready when you call, as the insurance company will need this.
You can add the teen to your policy
When you insure your teen, there are two main ways to do this. You could purchase an entirely separate policy for your teen, or you could add the teen to your policy. In most cases, it is better to add a teen to an existing policy, as this will often result in a discount for insuring multiple vehicles. You could always check around for quotes, though, just to be sure.
You can expect to pay a lot more
Insuring a teen can be very costly, and this is primarily because of the lack of experience teens have. The result of inexperience is an increased risk of accidents and claims, and it may also result in an increased risk of traffic violations. Over time, the rates should drop, though, as long as the teen avoids accidents and traffic violations.
You might be able to get discounts
The other thing to understand is that you should talk to the agent about every possible discount your teen is eligible for. For example, if your teen gets good grades, ask if there is a discount for this. If your teen took driver's education, ask if there is a discount for this. Taking advantage of every possible discount will help you lower the rates on the coverage.
If you have a child that will be receiving a driver's license soon, you may want to start calling around to find out quotes for coverage. To do this, contact an auto insurance company of your choice and request a free quote.