A Parent’s Guide to Insuring a Teen Driver

Including a teenage driver to an auto insurance plan is bound to raise premium payments but it is possible to control such increase.

For instance, instead of allowing teens to drive a Corvette, it is preferable to let them drive a Camry and to urge them to keep their driving records clean. A big and “boring” vehicle may not be something they would want but it can lead to lower costs for insurance.

Having teenage drivers added to a car insurance policy isn’t more expensive for no good reason.

parent's guide to teen drivers insurance

Teen driver's insurance can be expensive

Being young and new to traffic rules and regulations, it is not unusual for teen drivers to rack up tickets and get involved in accidents. New and less experienced drivers are some of the most dangerous drivers on the road. Teens are not really expected to be driving at their age and it’s usually wiser to just let them commute or use bicycles. However, should they be allowed to drive, it would be better to explore ways to avail of cheaper insurance.

Of course, insurance is important for a teen driver

Almost all insurers will demand for all family members with a driver’s license to be included in an insurance policy. It is important to inform the insurer if a teenager is already granted a driving learner’s permit since, usually, such teen driver is not yet charged in the policy until an actual driver’s license has been obtained.

It is likewise important to inform an insurer if you only have partial custody of your driving teenager. Different companies have different policies so it is best to be transparent about such circumstances.

It is nonetheless possible to avoid paying for insurance premium for a teenage driver through named exclusion.

Hot wheels not preferable

If a household has a number of cars, it is recommended to assign to teenage or new driver the one that costs the lowest to insure.

If a teenage driver is given a car of his or her own, experts suggest on checking for prevailing insurance losses associated with specific vehicle models especially for those manufactured earlier than 2010. Cars with lower insurance losses are expectedly the ones that are cheaper to insure.

Do not disregard discounts on auto insurance

Be sure to avail of car insurance discounts especially if your teen frequently or regularly goes for a drive. A 2010 study revealed that car insurance costs rose to a mean value of $800 every year with the addition of teenage drivers to the insurance policy. There are numerous insurance companies that offer discounts for good student drivers who maintain a “B” minimum. Discounts, furthermore, are also granted to teens who complete a driver’s education course.

Moreover, similar to the case of adult drivers, a clean driving record is very advantageous in lowering insurance costs.

Imposing parental influence

Needless saying, it is important for parents to keep tabs on their teenagers’ driving behaviors. Thankfully, several insurance companies offer monitoring devices for such purpose. Depending on the kind of device or system available, a driving monitor can track specific behaviors such as speeding, seat belt use, cornering and hard braking, and arrival and departure times.

Unfortunately, these devices are not widely used at present largely on account of the costs they entail. These devices usually cost a considerable sum for acquisition and they also involve periodic monitoring fees.

One company that offers insurance discounts on account of the installation of such monitoring devices is Safeco through its Teensurance program. The company particularly points out the GPS based system offered by Safety Beacon. According to the product innovation architect of the company that owns Safeco, the goal is to provide a tool that promotes safe driving practices.

There are also other devices or technologies that can be employed to ensure safe driving or to set conditions that enable safe driving. Some of them are devices that block mobile phone signals while a vehicle is in motion. There are also those that limite a vehicle’s top speed. More technologies and innovations are expected to be developed and introduced in the future.