Auto Insurance Policy For Teen Drivers

One of the most stressful times for parents can be when their child gets their driver's license. Even if the prospect of your teen driving doesn't stress you out, navigating the insurance process might.

Here is a quick to help you get the right automobile policy for your teen.

Finding the Right Insurer

Most parents look for an automobile policy for their teenager with the same insurer they use for their automobile policy. Although this is natural, and some carriers offer discounted rates for bundling multiple policies, it's not always the best option.

  • Documentation: in addition to providing an insurer with your teen's license, social security number, and birth certificate, you may also need to provide information about their driving history and even their academic transcripts. This is particularly true if they've had any traffic violations or accidents.
  • Cast a Wide Net: once you have all your information gathered, contact your insurance company and several other providers to let them know you want to add a teen driver to your policy. When you talk to insurers about your teen's policy, look for an insurer who offers discounts for safe driving, academic excellence, or reductions in rate for adhering to certain driving rules (not driving between 11 PM – 6 AM, not driving with more than one passenger, etc.).

Reviewing, Choosing, and Adjusting

Once you have received offers from multiple insurers, you can review your coverage options and choose the right policy for your teen.

  • Review: each insurance company will provide you with a list of coverage options that are available to you. Take the time to review these options and consider what coverage is appropriate for your situation. Some things to consider include the type of car the teen will be driving, the amount of time they will be driving, and your budget.
  • Policy: are reviewing your options, you can choose a policy and coverage levels that meet the needs of your teen driver. Before you finalize your decision, it's important to discuss the policy details with your insurer. For instance, if your teen is involved in an accident, will it impact your insurance rates? Or if your teen is involved in an accident with a passenger, what type of coverage does the policy give to the passenger? Specific questions like these can help you spot potential issues with the policy.
  • Adjusting: adding a teen driver to your policy might cause you to adjust your insurance coverage. For instance, you might want to increase your liability insurance or adjust your health insurance coverage. The important thing to look for are gaps in coverage that can leave you exposed to catastrophic financial loss.

For more information on an auto insurance policy, contact a professional near you.