Generally, auto insurance companies don’t require you to formally add your teen driver to your policy until he becomes a licensed driver. Typically, your policy will automatically cover your teen at no extra cost while driving with a learner’s permit. It is important though, to notify your car insurance provider and agent when you have a teen with a new permit. Insurance companies are different and yours might have specific regulations in place. Once your teen receives his driver’s license, then it is time to add him as a driver on your insurance policy.
If you have a teen learning to drive, start preparing your mind and your budget for a significant auto insurance rate increase. Teens are among some of the highest-risk drivers and insurance companies have more at stake when they insure them. Your premium will go up… Insurance rates for young men don’t usually level off until they’re around 25 years old. If you want to take a harder look at your coverage in order to decrease your premium, here are some suggestions:
• Discounts may be available for insuring multiple vehicles with the same company. Adding a teen driver to your policy will almost always be significantly cheaper than the teen having coverage through his own policy.
• Considering sensible vehicles with high safety ratings over flashy, new or expensive models which cost more to insure will keep that vehicle premium lower. If possible, add your teen driver as the primary driver for the cheapest car listed on your policy.
• A talk with your agent about increasing your deductible may be appropriate. Typically, you can get a lower premium by increasing your deductible. However, you must make certain you can afford to pay that higher deductible in the event of an accident.
• Review your vehicles with your agent. Based on your vehicles, decide whether you actually need collision and/or comprehensive coverage. Although teen drivers are much more likely to become involved in accidents, it might not make sense to purchase these coverages for much older vehicles.
• Most car insurance companies offer good student discount to teens who maintain good grades – A/B average. Some insurance companies allow teens to complete a driver’s education course for a discount.