Teen Driver Insurance - What Every Parent Needs To Know

Teen Driver Insurance – What Every Parent Needs To Know

Teen Driver Insurance can make even the bravest of parents cringe in fear! Are you ready for this? Your teenager is about to start driving! That young child who once relied on you for everything is ready for another big step toward independence.

But are you ready? Probably not. But ALLCHOICE Insurance is here to get you as prepared as possible with some important information about auto insurance.

In this article we look at a few Frequently Asked Questions About Insurance For Teen Drivers:



Do I need to add my young, permitted driver to my insurance?

No, you do not need to add your permitted driver to your auto insurance, regardless of their age, until they are fully licensed.

How much should I expect my premium to raise when I do add my child to my insurance?

When you add a newly licensed driver to your insurance, you can expect your premium to DOUBLE. That’s right, twice as much for one young driver.

The reason is simple, according to studies, teenage drivers get in significantly more accidents than seasoned drivers. So, paying double the premium for teen driver insurance isn’t too bad when you think of the price you would have to pay out of pocket for a new car!

Why Is Teen Driver Insurance So Expensive?

We don’t have to tell you that even the best teenagers can be reckless and irresponsible. Teenagers throughout America have the highest crash rates than any other aged drivers (16-year-olds specifically). According to a study conducted by ValuePenguin, North Carolina has the third-highest teenage driver fatality rate in America, 64% higher than the national average of teen drivers. Therefore, it’s important to ensure your teenager is covered by a reliable insurance company.

How can I lower my premium after adding a young driver?

One way to keep your teen driver insurance premium lower is by considering what kind of car your teen is going to drive. You may want to consider an older yet still reliable vehicle for your child. Car companies like Toyota, Honda, and Nissan tend to maintain reliability over the years. Finding one that is 8-10 years old, rather than brand new, can help keep your premium down.

Another way to lower your premium is to consider removing comprehensive or collision insurance from the policy for your child. If you have a vehicle that’s not high in value (which you can check on kellybluebook.com), you may be better off removing these coverages and paying out of pocket if your child does end up in an accident.

Should I lower my liability limits to lower my premium?

No, you should not lower your liability limits to lower your teen driver insurance premiums.

In actuality, you will likely want to increase your liability limits when you add your teenage driver. Typically, 1 in 5 16-year-olds is in an accident within their first year of driving (dosomething.org). If your young teenager does end up in an automobile accident, you are then liable for damages. We actually recommend that you raise your liability limits or add an umbrella policy to your coverage. This is something you should speak to your ALLCHOICE Insurance agent about.

It seems like my insurance is going to go up quite a bit. What else can I do to save money on my premiums?

If there are multiple people on your insurance plan, make sure everyone is keeping a clean driving record. While a lot of attention should be paid to your new driver, remember that if you or another insured family member gets a ticket or is in an accident, your premiums are likely to go up. So while your young driver is preparing for their license exams, it may not be a bad idea to follow along!

How should I discuss this with my teenager in a way they will understand?

First and foremost, discuss the immense responsibility they are taking on when they get behind the wheel. While no parent wants to face the reality of the dangers of teenage driving, it’s important to share this information with your new driver. According to the Centers for Disease Control and Prevention (CDC), in 2017, “six teens aged 16-19 died every day due to motor vehicle crashes, and hundreds more were injured.”

Also, discuss with your teen the importance of staying focused while driving. Any distraction, whether it’s cell phones, friends in the car, or even the radio, can have life-altering effects on teens. It is important you sit down and have hard conversations with your young drivers frequently about the risks you are trusting them with.

Where can I get more information to share with my teenage driver?

North Carolina has several local programs that were created in order to educate young drivers about the risks they are taking when getting behind the wheel. The “Click it or Ticket, Securing Your Future” program encourages teen drivers to wear their seatbelts while in a motor vehicle. This program is offered in many high schools throughout the state.

The Governor’s Highway Safety Program (GHSP), “StreetSafe,” is a hands-on driving program designed to educate students on how to navigate dangerous behaviors they may experience as a new driver.

Another GHSP program available to your teenager is VIP for a VIP (Vehicle Injury Prevention for a Very Important Person). This program gives students the opportunity to experience what it’s like to witness the aftermath of a fatal car crash. Delivered by volunteers from local emergency response teams, this visual presentation of the dangers of reckless driving will leave an impact on your child every time they are behind the wheel.

Teen Driver Insurance for North Carolina

Parents will never have all the answers when it comes to teenage drivers.

Handing over the keys to your child for the first, tenth, or hundredth time will always leave a feeling of unrest in a parent’s heart. What we can offer at ALLCHOICE Insurance is the peace of mind that if something does happen while your teen is behind the wheel, we will be there to walk alongside you and make sure you are receiving the best support possible from your insurance.

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