There are many things to consider before your teen gets their driving permit.
For your teen, this is the day they have been waiting for their whole life.
For the parent, this is when serious worry kicks in.
Having a new teen driver can be a scary thing to navigate. But insurance coverage and education can help the transition go more smoothly.
How can parents lower the cost of a licensed teen driver?
- Good student discount – depending on the carrier, good students may be able to receive a discount on their policy. This may require periodic submission of their report card to maintain the discount.
- Young driver education programs – some insurers offer education programs for young drivers, who if they complete the program, will receive a discount.
- If purchasing a car for your teen driver, consider what type of car will offer the lowest rates. For example, a four door car like a family style Honda or Toyota will generally be priced lower than a high performance vehicle like a Mustang or Camaro.
Parental Liability
Bear in mind, that parents may be liable for any negligent or criminal acts of their children including vehicle related incidents.
Be sure to discuss responsible behavior with your teen driver and set some rules with consequences for breaking those rules:
- No phone use while driving
- No drinking and driving
- Limiting passengers who can distract a new driver
- Stay within the posted speed limit
- Use a car monitoring system to supervise the young driver. New smart phones have apps designed for this. There are GPS monitoring devices that can be put in the car. Some newer cars have this built in as well.
- No eating while driving
- Adhere to local curfews and laws about number of passengers
Review your current auto policy limits!
This may also be a great time for parents to review their current policy limits and discuss purchasing an umbrella policy if they do not currently have one. The umbrella policy offers extra liability insurance to protect against major claims and lawsuits.
One of the reasons teen drivers receive such high insurance rates is because of the increased claims and tickets associated with inexperienced drivers. Because of this potential, parents are advised to purchase higher limits of coverage.
