As a parent, you’re likely happy and excited that your teen has studied and passed the test to get their license. But, you’re also aware that insurers generally classify teen drivers as high-risk drivers. That can make the process of finding auto insurance challenging.
Your auto insurance policy may increase if you add your teen driver to it. You’re extending your coverage to someone else, automatically increasing your rates. Adding an inexperienced driver makes things even more complicated. Be aware that every state measures different variables to help figure out auto insurance rates. Here are some key variables to be aware of while searching for auto insurance:
Auto insurance companies generally look at statistics to help determine auto insurance rates. The data is generally unfavorable for male teenage drivers. Male teen drivers are twice as likely to end up in a fatal car crash compared to female teen drivers.
If your teen driver has their own vehicle, they’ll be driving more frequently than if they were sharing a car. Listing a teen driver as the primary operator on an auto insurance policy generally leads to higher rates.
The make and model of a vehicle often impact auto insurance premiums. Your teen driver should expect to pay higher premiums if they are driving a high-end vehicle. It’s recommended that you research how much it will cost to cover a teen driver before finalizing a car insurance Thousand Oaks CA policy.
Possible Discounts for Teen Driver
While insuring your teen driver can get expensive, there are potential opportunities available for you to save money. It’s recommended that you talk to your insurer about potential discounts that can help you save money on premiums. Here’s a look at some potential discounts.
If your teen driver has set a standard of academic excellence, they should qualify for a good student discount. Most auto insurance companies offer this discount to students who maintain at least a B average. Insurers will assess your student’s report cards every year to see if they still qualify. A good student discount can help your teen driver save over 10 percent on premiums.
Many insurance carriers will offer a discount if your teen driver decides to take a driver’s education course. It’s recommended that you talk to your agent to see which courses your teen driver can take to qualify for the discount.
If your teen driver heads off to college in a different part of the country, your insurer may offer a large discount if the teen’s car is still located at the primary residence.
Failing To Notify Your Insurer
Failing to notify your insurer about your teen driver can have severe consequences. Each auto insurance company has its own guidelines and procedures. If your teen driver is held liable for causing an accident, your insurer may cover the claim while also charging you extra for insuring your teen. Also, be aware that your insurer may only provide minimum liability coverage while handling the claim. This could leave you responsible for covering the majority of costs out of pocket. There’s also a chance that your insurer may deny the claim, which may cause you to go into debt. It’s recommended that you notify your insurer as soon as possible that you’d like to add your teen driver to your policy.
Consult with Udell Family Insurance
Insuring your teenage driver can be exciting and terrifying at the same time. You should speak with your insurance agent to see how your auto insurance rates may change. If you have any questions, contact the team here at Udell Family Insurance, and we will assist you.