The excitement your teenager feels when they’re able to start driving might be the exact opposite of what you’re feeling as a parent. Driving gives teenagers the freedom they’ve longed for. However, with that freedom comes a tremendous amount of responsibility. Aside from the overall concern that comes with having a teen driver is the concern with how your insurance rates will be affected. Let’s clarify a few things, and hopefully ease your nerves a little, by going over a few important factors when adding your teenager to your car insurance and how much it could cost you.
Adding Your New Driver
As you are probably aware, adding a teenage driver to your policy means your insurance premiums will increase significantly. You also may be aware that any driver who utilizes your vehicle with permission is covered in the event of an accident, therefore, leaving you to wonder if you can get by without adding your newly licensed teen to your personal auto policy. IF your child is living in your home, you must add them to your policy. Even if they were to get their own vehicle and/or insurance, you must add them to protect your assets. Rates for a teen driver on their own policy is not the most cost-effective way to insure your teen, even with the Ct State Minimums. However, there are ways to help minimize the cost.
Minimizing the Cost
Unfortunately, the addition of a teenager to your policy can raise your premiums 30% – 100% if not more. There are some things that can be done to help fend off that increase. Below is a list of some ways you can save when adding your teen:
- Drivers Education – Here is an example of a local driving school offering classes that are geared toward first-time drivers to help build good safety habits and driving skills. Most carriers will offer a discount between 5% and 20% for completing a driver’s ed course, however, not all carriers offer this discount, so it is important to check with your Agent on this.
- Defense Driving – These courses, that can be found through the DMV not only offer a discount on your insurance, but enforce; driving distractions, road safety, driving basics, and boost confidence behind the wheel. Studies have shown that teens who took such classes do have reduced rates of crashes and/or convictions.
- Good Student Discount – A good student discount for a High School or College student with a B average or better is another way to get a discount on your insurance premium. The discount differs from carrier to carrier and does require a current year report card and/or transcript.
- Telematics – This is a method where your carrier can collect information about mileage and driving habits and does offer a significant discount and/or safe-driving rewards. It can also help you monitor your teens driving habits to ensure there are consistently driving safely.
- Student Away – If your high school or college age driver attends a school a certain mileage–radius from your home (usually 100+ miles) most of the year, with some carriers, you can save on your policy premium as they are not considered a full-time driver.
Again, these are just some ways that you can save when adding your teen driver.
Reach Out to Street Smart
For assistance with an existing policy or to start a new quote, contact Street Smart at (203)281-6835.