The day comes for every parent when the beautiful bundle of love you brought home from the hospital speaks those inevitable words, “Can we go to the DMV to get my permit?” In the blink of an eye your little one is now about to become a “youthful driver” that you need to insure. Here’s what you need to know to get your teen driver insurance.

To start: plan in advance. Call your auto insurance company and find out what their requirements are. Many car insurance companies, including states’ farm bureaus, do not insure a teen driver because of the inherent risk of being newly behind the wheel. Many require that every driver on the policy have at least five years of driving experience. Other auto insurance companies will gladly add the driver, but you may decide that the premium is not affordable for your family’s budget.

While your teen is learning to drive, be sure to inform your auto insurance company that you have a “permitted driver” (meaning they have their permit, but not their license) in your household. This means that your permitted driver will be allowed to drive a vehicle listed for your household, as long as a parent or guardian is in the passenger seat. Your policy will not be financially impacted until he or she becomes a licensed driver, so make sure he or she has been added to your policy at this time.

Once your teen gets his or her license, it is generally cheaper for your family to keep all drivers on one policy. Some parents may prefer for their 16-year-old to maintain their own insurance policy; however, the reality is that in most cases 16-year-olds are considered minors and cannot sign contracts entering into a legally binding agreement, so they will be declined until they are at least 18 years of age.

If you have a teenage driver living at your residence who is legally an adult (18 years or older), he or she can get his or her own insurance policy while driving your vehicle. However, there is a term in the insurance world called “vicarious liability”, which means as the parent and vehicle owner, you may not be free from liability. For example, let’s assume your son has purchased insurance at the state minimum liability requirement of $25,000 per person/$50,000 per accident. Shortly thereafter, he causes a collision in which the other driver’s injuries prevent him from returning to the quality of life he had prior to the accident. If the sum on your son’s policy does not cover damages awarded, your insurance policy and its coverages could come into play.

Parents can protect themselves by managing the insurance policy and the vehicles in the household. This does not mean that youthful drivers should not be responsible for their part of the premium. Driving is a privilege, so one suggestion is to have some “Rules of the Road” in your home to earn that privilege. For instance, a “B” average or better on grades in high school or college can amount to important discounts on a policy. So, maximize the discounts in the following ways:

1. Maintain good coverage. If you are a homeowner, adequately protect yourself with liability limits of $100,000 per person/$300,000 per accident and property damage at no less than $50,000. Many carriers give you a discount for proper protection.
2. Make the grade, young driver! Most insurers offer discounts for good grades.
3. Have your young driver get a job to help with the premium. They will take more ownership and recognize the privilege more if they are participating in the payment of the premium.
4. Driver’s education provides another discount.

Lastly, set a good example. Explain to your teen driver how insurance works. Make sure the policy never lapses, as this adversely affects your future premiums and your insurance score. Lapses in coverage on your vehicles can lead to forced-placed insurance by your lender and certainly increased premiums for you.

To compare auto insurance quotes online visit AnswerFinancial.com, or if you prefer, call 1-800-258-5101 and have a licensed insurance agent walk you through your options, compare coverages and discounts, and help you through your purchase.

Who is Answer Financial?

As one of the nation’s largest and most reputable auto & home insurance agencies, Answer Financial has insured nearly 5 million homes and vehicles. We work with 40+ top-rated carriers to save our customers an average of $565 a year on insurance.^* 

Answer Financial can help you compare, buy and often save the smart way on insurance. So before you shop, remember to rely on your insurance experts to find you the right insurance plan for your needs and budget.