Should You Add Your Teen Driver to Your Auto Insurance Policy?
Handing the keys over to your teenage driver is one of the most frightening and stressful experiences a parent can have, but it is one that nearly every parent goes through. One of the things that can make it easier is knowing your teen driver has adequate insurance coverage that is not costing your family an arm and a leg.
Adding Teen Drivers to an Insurance Policy
One of the ways to manage auto insurance for your teen is to add him or her to your existing policy. This means your teen gets the same policy coverage, limits, and deductibles you pay. You can also customize coverage for your teen’s vehicle if you think it’s necessary. Adding a driver to your policy qualifies you for a multi-car discount and allows you to share policy perks. In some cases, this will offset the added expense of insuring an inexperienced driver.
Unfortunately, there is no guarantee adding your teen to you existing policy is the cheapest option. Your premium will increase with the addition of a new, inexperienced driver. Insurance companies view inexperience as one of the worst risks and statistics back them up: teens tend to have three times as many accidents as drivers over the age of 20.
And by adding a riskier driver to your policy you are putting your coverage at risk. If your teen does cause an accident, your policy perks could suffer. Not to mention your coverage might not be enough when it comes to dealing with an accident caused by your teen. If you do decide to add your new driver to your existing policy, make sure you adjust the coverage amounts accordingly.
Buying a Separate Policy
You have the option of buying your teen driver a separate insurance policy. This is usually more expensive when it comes to premiums, but it could save you in the long run, especially if you are concerned about good driver perks or any other benefit of having an auto insurance policy for someone with a flawless driving record. Chances are your new driver will make a few mistakes – hopefully ones that don’t result in anyone being harmed – and if you want your policy to stay intact, the best bet is to get your teen his or her own coverage.
Finding insurance coverage for a new driver can be tough. Our free search tool can help you make the best decision based on your circumstances and your budget.