Lucky you. Your teenager is now old enough to drive and has brought home an application for a learner's permit. You know what that means. Your teen will soon need automobile insurance. According to insurance companies, the 16-to-24 year-old set are the highest risk drivers on the road. That means insurance will be expensive. There is some good news, however. With a little information and planning, you may be able to save hundreds of dollars.

You may not want to add your teen to your policy immediately
Once your teen has a learner's permit, the insurer may insist that the teen be added to your automobile policy immediately, and that you start paying the necessary additional premiums.

However, companies we represent may be more lenient where learner's permits are involved.  Learner's permits are typically issued for a period of 60 to 180 days. During that time, your teen can only operate a vehicle if an adult with a valid driver's license is in the car. Additionally, some areas only allow teens to drive during daylight hours.

Because of these restrictions, insurers are increasingly considering the teen with a learner's permit to be a lower-risk driver. The insuror may still insist that your teen be named on your automobile policy, but it may only require a nominal or reduced premium while the teen is operating under a learner's permit. Check with us to determine where you stand.

What should you do once your teen's license is issued?
If you haven't already done so, it is generally advisable to add your teen to your automobile policy once a driver's license has been issued. You might ask: But isn't my teen still an insured under my policy? Technically, yes, and if your teen has an accident your insurer will likely cover the claim. However, at that point the insurer can charge you retroactively for coverage on your teen from the date that your teen became a licensed driver. That could require you to come up with a substantial lump sum of money to keep your policy from lapsing.

Would it be cheaper for your child to have an individual policy?
Sometimes it is less expensive to set your teen up with their own car and their own insurance policy than to add them to your own. If you drive expensive cars, it will be costly to add your teen to your policy, because expensive cars are expensive to fix. If, on the other hand, you buy your teen a safe used economy car, waive the collision and comprehensive coverage, and set your teen up with his or her own policy, you may come out ahead--even though you have to purchase another vehicle. The outcome of the analysis may also depend upon what kind of policy you have. Some parents have access to safe driver discounts and multiple car discounts. It is still expensive to add your child to your policy, but with these discounts it is at least manageable. Your teen would not have access to those discounts on their own.

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Please Note: The information contained in this Web site is provided solely as a source of general  information and resource.  It is a not a statement of contract and coverage may not apply in all areas or circumstances.  For a complete description of coverages, always read the insurance policy, including all endorsements.