Driving may be a rite of passage for teenagers, but for parents, having a teenage driver can be stressful and expensive. Your child will need auto insurance coverage as soon as they receive their driver's license. Here are a few important considerations.
Determine whether to add your child to your policy or purchase a separate policy
-Check with your insurer to see how your premiums may be affected. Expect that they could rise dramatically; however, savings may be found through multi-vehicle and good student discounts.
-If your child is driving an "old beater" that doesn't require comprehensive or collision coverage, a separate policy, in limited instances, may save you money.
-Discuss your options with your insurance agent.
Consider your teen driver's coverage choices
-Most personal auto policies won't cover a driver transporting goods or services in exchange for a wage. So, if your teen is planning on becoming a pizza delivery driver, for example, contact your insurance agent to determine if additional coverage is needed.
Find ways to save money
-Consider vehicles with high safety ratings over sportier, more-expensive cars.
-Think about raising your policy's deductibles.
-Reassess your need for collision or comprehensive coverage
-Ask about "occasional" or "pleasure only" discounts, which may apply to children away school.
-Explore usage-based insurance, which involves installing a device in the vehicle that monitors driving behavior and rewards good driving. It's also a way to keep tabs on your teen's driving.
-Have your teen complete a driver's education course.