Getting a driver’s license is an exciting milestone, whether you’re a teenager or learning to drive later in life. It also brings new responsibilities, including making sure you have the right auto insurance coverage. Insurance for teen drivers and other new drivers can cost more because insurers have less driving history to evaluate. However, there are ways to make thoughtful coverage choices and potentially manage those costs.
Adding a new driver is also a good opportunity to review the household’s existing auto insurance. The right coverage should do more than meet state requirements. It should provide appropriate protection for the driver, vehicle, passengers, and others on the road. Understanding your options can make the insurance side of this milestone much less overwhelming.
Why Insurance for Teen Drivers Can Cost More
Insurance companies consider several factors when determining auto insurance premiums. Driving experience and history are among them. A newly licensed driver has little or no driving record, which gives the insurer less information to use when evaluating risk.
Age can also play a role, particularly for teenage drivers. Insurers may also consider the driver’s sex when setting rates, and young male drivers often pay more than young female drivers. As new drivers gain experience and establish a safe driving record, their insurance rates may change over time. The vehicle matters too. A car’s value, safety features, repair costs, and other characteristics can affect the cost of coverage. Before buying a vehicle for a new driver, it can be helpful to check insurance costs for several models.
Should a Teen Driver Be Added to a Parent’s Policy?
Many families add a newly licensed teenager to an existing household auto policy rather than purchasing a separate policy. The appropriate arrangement depends on the household, vehicles, drivers, and insurance carrier. Your agent can explain how adding the new driver will affect your existing coverage and premium.
Don’t wait until after your teenager has been driving regularly to discuss the change with your insurance company. Requirements for permitted and licensed drivers can vary by carrier. Contacting your agent before a teen begins driving can help ensure the household has the proper coverage in place. This is also a good time to confirm which vehicles the new driver will use. If your household has several vehicles and drivers, your insurer will need accurate information to rate the policy correctly.
Choose the Right Car for a New Driver
The first car for a new driver doesn’t need to be the newest or most expensive vehicle in the driveway. Safety, reliability, repair costs, and insurance costs are all worth considering. Some vehicles may cost considerably more to insure because of their value, performance, repair expenses, or claims history. Safety features can be another consideration. Many newer vehicles include technology designed to help drivers avoid or reduce the severity of accidents. Features may include automatic emergency braking, lane departure warnings, blind-spot monitoring, and other driver-assistance systems. Before purchasing a vehicle, ask your insurance agent for an estimate of what it may cost to insure. Comparing insurance costs before buying can help prevent an unpleasant surprise after the keys have already changed hands.
Look for Discounts for Teen and New Drivers
Adding a young driver can increase the cost of an auto policy, but discounts may help offset some of that expense. Available discounts vary by insurance company and state, so it is worth asking which ones may apply to your household. Some insurers offer good student discounts for eligible young drivers who meet academic requirements. Driver education or approved defensive driving courses may also qualify for savings with certain carriers. Other discounts may relate to vehicle safety equipment, multiple vehicles, or combining eligible insurance policies with the same company.
Some carriers also offer optional programs that evaluate driving habits through a smartphone app or other technology. These programs may consider factors such as mileage, braking, acceleration, and driving times. They aren’t right for everyone, but families who are comfortable participating can ask whether a safe-driving program offers potential savings. For more ways to potentially reduce your premium, see our guide to auto insurance discounts you might be missing
Don’t Sacrifice Important Coverage Just to Lower the Premium
When the cost of adding a new driver increases the household premium, it can be tempting to reduce coverage to save money. Price matters, but so does the financial protection the policy provides. A serious accident can result in medical expenses, vehicle damage, property damage, and liability claims. Review your liability limits when adding a new driver. You may also want to discuss collision and comprehensive coverage, deductibles, and uninsured or underinsured motorist coverage. Your needs will depend on your vehicles, finances, existing policy, and state requirements.
Families with significant assets or additional liability concerns may also want to discuss umbrella insurance. An umbrella policy can provide additional liability protection above certain underlying policies when a covered claim exceeds those limits. Your insurance agent can help determine whether this additional coverage makes sense for your household.
Encourage Safe Driving From the Beginning
Insurance is only one part of preparing a new driver for the road. Establishing safe habits from the beginning can help reduce the likelihood of accidents and build a stronger driving history. Parents can reinforce those habits by setting clear expectations and demonstrating safe behavior themselves. Parents can also help new drivers gain supervised experience in a variety of conditions, including nighttime driving, highways, traffic circles, rain, and other challenging situations.
New drivers should understand the importance of avoiding distractions, following speed limits, and leaving enough distance between vehicles. Seat belts should be automatic for everyone in the vehicle. Teen drivers should also understand any state restrictions that apply to newly licensed drivers, including passenger or nighttime driving restrictions. Parents may want to establish household rules that go beyond minimum legal requirements. Clear expectations about phone use, passengers, nighttime driving, and who may use the vehicle can help new drivers develop good habits while they gain experience.
What Happens After an Accident?
Even careful drivers can have accidents. New drivers should know what to do before they ever find themselves standing beside a damaged vehicle. Make sure they know where to find insurance information and whom to contact if something happens.
After an accident, the first priority is safety. Move to a safe location when possible and contact emergency services when necessary. Drivers should exchange appropriate information and document the scene with photos when it is safe to do so. They should also avoid admitting fault or making assumptions about responsibility at the scene. Knowing these basic steps ahead of time can make a stressful situation easier to manage. Parents should also make sure a teen driver knows how and when to contact the insurance company or agent after an accident.
Review Your Policy as Your New Driver Gains Experience
Auto insurance needs aren’t static. A teenager may eventually leave for college, purchase a vehicle, move to a different address, or begin driving more or fewer miles. An adult who recently earned a license may also experience changes that affect coverage. Keep your insurance agent informed when circumstances change. A student who attends college away from home, for example, may affect the policy differently based on where the vehicle is kept and how often it is driven. Changes to vehicles, drivers, addresses, and driving habits can all be reasons to review the policy.
It is also worth periodically asking whether new discounts have become available. A driver’s eligibility can change as they gain experience, maintain a safe record, complete certain courses, or reach other milestones.
Help Your New Driver Start With the Right Coverage
A new driver’s first years on the road involve plenty of learning, and understanding insurance is part of that process. Reviewing coverage before the new driver gets behind the wheel can help your family prepare for both the expected costs and the unexpected situations that may occur.
For 35 years, diMonda Insurance has provided tailored insurance plans to thousands of satisfied Americans. We provide comprehensive and personalized coverage for auto, home, life, and commercial insurance. Our team can review your existing auto policy, discuss coverage for a new driver, and explore available options from multiple insurance carriers. Contact us to make sure your teen or new driver starts this next chapter with coverage suited to your family’s needs.
