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Car Insurance for a Young Driver

When you have a new driver in your home, you will know the feeling of them not being ready to drive. You will ask yourself "how did it go by so fast?". You will probably feel like they can't drive properly without you. Well, let's put your feelings aside for a bit.

You are right about all of the above. A young driver simply doesn't have the experience that an older driver has. The insurance rates for young drivers are higher for a reason. They are involved in more car accidents. That is the bottom line. A young driver won't have the experience that comes with many years on the road and won't yet have the frightening experience of a near miss collision or a comprehensive loss from having a deer run into the side of their car.

Cheaper Car Insurance for Young Drivers

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Yes, insurance rates will be higher, but there are some steps that you can take to help keep the costs down and to help shield yourself (albeit, partially) from the liability that can come from an accident.

The primary question you need to answer when buying insurance for a young / teenage driver is "Should they be added to my policy, or should they be on their own policy?". There are benefits to adding a teenager to Mom or Dad's insurance policy.

  1. Cheaper insurance rate
    The rates that you (the parent) are receiving might be far lower than those that your teenager could get on their own. If you have good credit and a clean record, you could end up saving your teen hundreds of dollars per year by having them on your insurance policy.
  2. Higher coverage limits
    If a teen is on your insurance policy, your coverage limits will apply. You are likely to be carrying higher coverage than your teen (higher coverage might be cost prohibitive for a teen on their own policy)
  3. Control over the coverage
    If you are looking to be sure your child maintains insurance coverage and keeps up with the premium installments, there is no better way than having the coverage on your policy.
  4. Discounts
    A single vehicle insurance policy will not see the benefit of a multiple car discount. Not to mention the additional discounts that you might qualify for. This could add up to a savings in excess of 30%!

There are also many disadvantages to adding a young driver to their parents insurance policy.

  1. Liability Exposure
    If a child is on their own policy, this adds a layer of protection between you and that child. By adding a child to your insurance policy, you will be exposing yourself to the actions of your young driver. This could cause a financial burden should an accident occur that ends in a lawsuit. You will be sued as the "policyholder".
  2. Surcharges that Affect You
    If your young driver has an accident or a ticket, you might see a surcharge on your policy due to that incident. In fact, some companies will surcharge all cars on a policy (not just the car that the teenager is driving).

When considering insurance coverage for a young driver, contact multiple insurance companies. Having the coverage in the name of the operator could help out in the long run. In fact, it could help them get to a cheaper insurance rate faster than if they were on the parents insurance policy. Use our online quote for to compare rates for your teenage driver. Combine this with a quick phone call to your local insurance agent and you should be armed with the resources you need to make a sound insurance buying decision.

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