If your teen is on the verge of becoming a new driver, you will be facing a number of challenges. One important one will be to ensure your teen driver has proper car insurance. This generally won’t be easy, or inexpensive. According to the Insurance Research Council (IRC), adding a teen driver to your insurance policy can easily double or even triple your premium costs. Finding teen car insurance that balances between what coverage he or she will need and what fits in the family budget is the key to this challenge, but there are some simple strategies to follow to get you there.
The three-step solution
To make things simple, consider a three-step solution to finding teen car insurance. The three steps come in answering these three questions:
What’s the required coverage for my teen’s car insurance?
What’s reasonable coverage for my teen’s car insurance?
What’s affordable coverage for my teen’s car insurance?
Requirements – in recent years, states have adopted Graduated Driver Licensing (GDL) programs as a way to reduce the number of tragic teen car accidents. These programs phase-in a teen’s driving privileges based on successfully completing phases of restricted and supervised driving. As a result, there are varying stages of when a teen is now considered a fully licensed driver, triggering whatever your individual state’s legal requirements for car insurance coverage are. Know what the requirements for your teen driver(s) are before you go shopping for teen car insurance.
Reasonable coverage – every insurance expert will tell you that state requirements for insurance coverage are woefully inadequate and that whenever possible, you should get levels of coverage in excess of those minimums. This applies for teen car insurance, too. Outline the major factors you want to address when considering teen car insurance policies, including:
- The car you teen will be driving on a regular basis
- How much driving your teen will be doing
- Under what conditions your teen(s) will be driving (time of day, length of trips, types of road, city or suburban or country settings, etc.)
Affordable coverage – the easiest way to save on insuring a teen is through the pursuit of premium discounts, and every major insurance company offers a host of them. Some of the more common discounts that may apply when you are looking for teen car insurance are:
- Good student discounts
- Safety features discounts (if the car your teen(s) will drive comes equipped with airbags, safety belts, anti-lock brakes, backup cameras and anti-theft devices.)
- Defensive driving discounts (if your teen successfully completes an approved course.)
- Multi-vehicle discounts
- Multi-policy (bundling) discounts
Get multiple quotes
If you follow these three steps and still don’t like the rate your current insurance provider is offering, start looking around for a company that is more affordable but also provides the protection you need. There are more than 2,000 companies registered in the United State who can sell car insurance and you’re bound to find some that fit just the right balance for your coverage needs and your budget when you start looking for teen car insurance.
Learn more about teen car insurance here: reply.com/insurance/teen-car-insurance-what-you-should-know.
Jeffrey Davidson is a writer with Reply!. He has more than 25 years of marketing research, public relations consulting and freelance writing experience and work in all areas of the auto insurance industry.