This is a question we are asked often. With a new teen driver in the family life certainly changes a bit. The issue of the best new driver insurance policy—whether combined or separate—is one that you as a family need to sit down and decide on together. Of course your insurance broker can be a great source of information so asking for their input is a smart first step. Here are a few things that you should definitely consider when it comes to teen driver insurance:
Teen Drivers Generally Have Higher Insurance Premiums
Regardless of whether or not you put your family’s newest driver on your policy the premiums for teens are generally higher than for adults who’ve been driving for awhile. It’s simply common sense: teens are inexperienced and this means that behind the wheel they are apt to make more mistakes and possibly take risks that an experienced driver would not. Insurance companies understand this and thus charge more. Not to mention statistical data does show that in Canada younger less experienced drivers are nearly 50% more likely to be involved in a car crash.
So knowing right from the get-go that insurance coverage for your teen driver is going to be a bit more expensive is important to take into consideration. One way to save some money on your new driver’s insurance is to take out a policy with the same insurance company under whom you’re already covered. Multiple driver discounts may apply.
The Minute Your Teen Driver Gets Their License They Need to Be Covered By An Insurance Policy
While in the permit stage your teen may not necessarily need to be insured but as soon as they have license in hand that insurance coverage needs to be in effect. Even if they do not have their own car they have to be included in the policy as long as they will be driving your vehicle. And again depending on your situation and your family’s needs the type of coverage can vary. But that coverage must be active immediately for your newly licensed driver.
What Can Impact Your Car Insurance
Accidents traffic violations and ticketsimpact your insurance rates. Depending on the number and severity of accidents and / or infractions premiums can increase by anywhere from 25-45 percent. This is one reason why some parents opt to get their teen their own car insurance policy. At least then the increase is isolated to just that individual policy and as a family you can negotiate responsibility.
Is There Anything We Can do To Lower Our Teen Driver’s Premium?
Yes. Again insuring all family members regardless of policy type with the same company just makes the most sense financially. You might also consider the following: have your teen take some sort of defensive driving course make them participate in a driver monitoring program or even look into potential good student discounts for your teen driver.
The first step when you have a new driver in the family is always going to be to make sure that you have the right insurance coverage in place. Talking to an experienced insurance broker can be extremely helpful in deciding whether or not to get your teen driver their own insurance or simply add them to yours.