Life in the Carpool Lane: Everything You Need to Know About Insuring a Teen Driver

Having a teen driver is a big source of worry for parents, especially within the first year of having their license. There is a lot that teenagers don’t understand about driving, cars, costs of repairs, etc., and it’s up to you as a parent to teach them about these things. While you may be an expert with your own insurance, you need to know some specific information about insuring your teenager’s vehicle. Read on to learn the essentials of insuring a teenage driver.

The Cost of the Car and the Cost of Insurance

Generally, newer cars are going to be more expensive to insure because states usually have laws requiring a certain level of protection for them. However, you need to weigh out the benefits and the drawbacks. An older vehicle is likely to save you money on insurance, but it also likely has a greater chance of breaking down, which could just lead to more repairs in the end. Knowing the type of usage the car will get helps with this decision.

Drivers Education and Car Insurance

Depending upon the state that you live in, driver’s education might be required. In these areas, it is unlikely that your teenager is going to receive a discount for insurance because he or she was required to take the program. When you are living in a state where driver’s education is optional, ask the car insurance company if a discount is available once the course has been completed.

Receiving Good Grades and Discounts

Encouraging your teenagers to do well in school now has another benefit; it could save you or them money on their car insurance. Find out about the specific requirements of the program when you first sign up. Each car insurance company is going to have a different minimum grade or grade point average that must be achieved for the discounted rate, but many of them will likely have a minimum grade requirement of around a B or higher.

Paying the Deductible

Fully understanding insurance is something that even some adults have difficulty with, but you want to make sure this point is crystal clear to both you and your teenagers. When you have to go through your insurance to pay for the damage on your car, you generally need to pay a deductible. This means that the entire cost of repairs is not paid for by your insurance company. A $500 deductible is fairly common. Therefore, you want to ensure that your teenager has this money saved up if something were to happen with his or her vehicle, and that they know how much a crash or fender bender could set them back.

Talking to your teenagers early about car insurance is smart so that way they know about the costs associated with it and how they can keep their rate down. One day, your teens will be paying for their own insurance, so it’s helpful to help them learn the ropes now. Teen drivers always present a risk, but if you get your insurance set up properly from the get-go, you will have less to worry about.

AUTHOR BIO: Dixie got her advice for this article from the professionals at the Valley Driving School who offer driving lessons in Vancouver.