Children really do grow up fast. And while each stage of parenting comes with good and bad, nothing can quite prepare you for when your teenager starts to drive. In the United States, sixteen is the legal age for children to operate a motor vehicle without an adult (over 21) present. So, before you go and buy Susie her first car, you need to be aware of the costs associated with teenage drivers.

Adding a Teen to Your Policy

Most times, the parents/guardian will opt to add the teen driver to the existing car insurance policy. We’ve outlined some points below:

• Extend your coverage options to your child: Your policy’s overage, limits, and deductibles will apply to your teen. You can customize your teen’s car-protecting coverages, like comprehensive and collision if you’re adding a car
• Qualify for the Multi-Car Discount: Many insurance companies offer a multi-car discount that can aide in saving money
• Share your hard-earned policy perks: Discounts on your policy can help offset the potential cost of adding an inexperienced driver

However, there are negatives associated with adding your teen to your existing policy. We’ve outlined a couple below:

• Increased auto insurance premium: It’s going to be rare to find a policy that will not increase when you add a teen driver to the coverage. According to the Insurance Institute for Highway Safety (IIHS), teen drivers have 3x as many car accidents per mile as drivers aged 20 and older
• Risking policy perks: If your child causes an accident or gets multiple moving violations, a rate increase is almost guaranteed, and you run the risk of losing your hard-earned policy perks

Perks to Ask For

It can seem scary to add a teen driver to the policy and it’s always a good idea to check with your insurance carrier to get an understanding of what adding a teen driver will do. Ask your insurance provider if they offer “good student discounts”. The credit will vary per student, but it can help reduce the premium of the teen driver.

Additionally, some insurance companies may also provide a discount for young drivers who use devices that monitor their behavior behind the wheel.

And while this last suggestion may not be popular with your teen driver, it is practical. We suggest thinking about an older vehicle for your new driver that might not have to have full coverage, including comprehensive and collision.

At Ramey King, we understand that insuring your young driver is not a decision to be taken lightly. We’re experts in this field and would be happy to assist in the process in anyway. Contact us today for more information!