Your teen has officially received their license, which means it’s time to start thinking about insurance expenses. While exploring different policies and prices, try not to let higher insurance rates and expenses steer you away from choosing the best plan for your child. We have some advice to help you save money and keep your teen safe as you prepare them for the road ahead.
Tips to Adding Your Teen to a Car Insurance Plan
Teens being added to insurance policies can create extra expenses, but there are ways to reduce how much rates climb. Before you add your teen to an existing policy, read these tips to help you stay relaxed while keeping your child safe.
General Auto Insurance Tips to Consider
Before your teen receives their license, think about adding them to your automobile insurance plan. If you include your child to the family plan, try assigning them to the safest car on your policy to save money. Lastly, ask for discounts to alleviate some of the cost, such as students who receive good grades or take driver safety courses.
Decide How Much Insurance Coverage You Need
Purchasing a policy that will grant your teen full coverage is the best option to ensure their safety. Additionally, policies can protect against parents’ assets, such as savings or investments, that can become at risk in the case of a liability claim. Policies with full coverage typically have the following limits:
- $100,000 in liability to pay for injuries to others and up to $300,000 per accident
- $100,000 to pay for damage to other vehicles and property
- Comprehensive coverage to pay for flooding, theft, fire, and animal crashes
- Collision to pay for damage to the vehicle you own
Choosing the Best Car for Your Teen
There’s always excitement involved when choosing your first car. For first time drivers, safer models such as Honda, Toyota, or other four-door sedans will help keep costs down. Keep in mind that your teen probably doesn’t need a new car. Car models from 2014 and newer generally have more advanced safety features such as backup cameras, electronic stability control, and Bluetooth that can aid your teen as they learn to drive. Additionally, choose models with smaller engines.
Auto Insurance Options to Consider
It’s almost always more expensive for a teen to be on their own policy rather than being added to a parent’s existing policy. Car insurance companies base their rates on risk, so teen drivers typically will have a hard time receiving an affordable policy on their own.
Adding Teens to Existing Parent’s or Family Plan
- Eligible for rate reductions such as multi-vehicle or multi-policy to lower costs
- Lower costs available for parents with better experience and driving records
Adding Teens to Their Own Insurance Plan
- Parents still liable for child’s accidents if the teen is under 18
- Parents still have to sign the policy, depending on the state, for those between 18-21
- For teens who already have a significant amount of traffic violations/accidents
There are many reasons why car insurance is a necessity, especially when adding your teen to an auto insurance plan. Here at the TJ Woods Insurance Agency, we can assist you with all your insurance needs. Contact us today to get your teen on an insurance plan or for more information!
