The Parent's Mini Guide To Insuring Their Teen Driver

When a teenager begins driving, many parents often have a number of concerns when it comes to car insurance. Unfortunately, the terms and polices for adding a teenage driver to an insurance policy vary widely between different states and insurance companies. Here are just some of the more common concerns.

Learner's Permit

When your child gets a learner's permit, you may not be required to immediately add them to your auto insurance policy. In many cases, your vehicle will still be covered under the existing terms of the policy. One of the reasons for this is that most states restrict individuals driving on a learner's permit to only driving when there is a licensed driver in the vehicle accompanying them.

With this type of stipulation, there is less assumed risk on the part of the insurance company. Make sure you check with your insurance provider to be certain this is the procedure for your policy.

Saving Money

When you're ready to add your teen driver to your policy, saving money is a concern. Particularly if your child isn't allowed to drive much, give an accurate account of their average anticipated mileage when completing your quote. Insurance rates are based on risk. The less miles you drive, the lower the risk.

In this instance, a child that is only allowed to travel 5 miles to school and back, five days a week would likely get a lower rate than a teen who drives 30 miles, seven days a week, due to a low-mileage discount. If your child makes good grades, you might be able to get a good student discount as well.

Teens With No Car

Some people are under the impression that you only need to add your teen driver to an auto insurance policy once they have their own vehicle. While most auto policies do extend coverage to a vehicle, regardless of who is behind the wheel, when it comes to licensed drivers in your home it's not always this simple.

Most states will require that all licensed (not permit) drivers have their own coverage or be included on another person's policy within the home. In cases of divorced households, if the child routinely has access to vehicles in both homes, both parents may have to add the child to the policy.

Insuring that you understand the terms of your policy regarding teen drivers can help give you confidence that your teen and your vehicle is protected and ensure you avoid any penalties.