As much as you’ve been waiting for this moment, you’ve been dreading it, too: Your teen has passed the state driving test and is now an officially licensed driver. You no longer have to taxi him or her to school, to practice or to friends’ houses.
But, your newfound convenience isn’t without concern. Of the many things you worry about with your young driver, including your child’s safety, the cost of insuring your teen is high on the list. So, let’s take a look at what goes into teen car insurance rates so you can better understand what you may be in for.
In most cases, yes. After all, you’re extending your coverage to another driver, and that typically costs more. And, not just any driver – an inexperienced one.
The direct impact on your car insurance rates can vary depending on the state where you live. That said, most states allow insurance companies to utilize the following factors in pricing coverage for a young driver:
It’s true teen car insurance rates can be pricey, so be sure not to overlook opportunities to save. Your independent agent can help you better understand potential discounts that may be available to you. Here are a few common ways to save on teen car insurance, but these can vary by carrier:
The consequences of not informing your carrier of a new driver can vary by state and carrier. However, the end result may be financially devastating.
In the best case scenario, if your teen causes an accident, the insurance company may decide to cover the claim. However, it may also charge you for back premium, i.e. bill you for the extra cost of insuring your teen, dating back to when his license was first issued. This may be significant depending on how much time has passed.
Even if the carrier does agree to cover the claim, it may only do so according to the minimum liability limits of your state. This scenario could leave you severely under-insured, and you may have to pay for some of the costs out of your own pocket.
In the worst case scenario, the carrier may deny the claim entirely, leaving you responsible for all damages. That includes damage to all vehicles involved, property damage, bodily injury, pain-and-suffering and loss of income. Is this something you are willing to risk with an inexperienced driver?
Handing your keys over to a teenager may be terrifying, but it also provides freedom for you both. With careful consideration of your insurance needs, you can enjoy this time as the rite of passage it is. Stay safe and contact your independent agent with all of your teen driver insurance questions!
About April McBriarty-Weismann and HPM Insurance
April McBriarty-Weismann has worked in insurance nearly her entire life. She began modestly, cleaning her father’s insurance agency, McBriarty Insurance, back in the ‘80s as a high school student. She went on to obtain a degree in journalism and work in advertising before getting back to her roots and joining her father’s firm. Helping run the firm for 10 years, she then sold it to HPM Insurance, where she now serves as the Vice President of Business Development and Communications. Combining her insurance expertise and creative writing skills, she seeks to make insurance understandable and even fun for clients of HPM, which has locations in Amherst, New Hampshire, and Bedford, New Hampshire.
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