Getting behind the wheel for the first time is a milestone in your teen’s life.
It’s like a passage to adulthood. However, you must safeguard your kids and your family’s finances by adding them to your auto insurance policy.
Failure to add them to your policy could result in severe consequences if they’re involved in an accident. As the responsible adult, you could be held liable for damages to property, medical expenses, or even loss of life. Additionally, inexperienced drivers might risk losing their licenses.
Unfortunately, parents sorely need to be educated on matters concerning vehicle insurance for their teens.
Would Adding a Teen Complicate Your Vehicle Insurance Policy?
For the most part, adding your kids is a simple enough process, but it does add to the cost. For example, insurance companies compute the premium payments based on the risks around the driver.
Being a new driver, your teenager needs to gain the experience and practical knowledge that a veteran driver possesses. So, your insurer likely considers that an added risk you must shoulder through increased premiums.
Upon receiving their licenses, the policy will then be transferred into the students’ names.
How Much Does it Cost to Add Your Child to Your Auto Insurance?
According to the insurance marketplace Policy Genius, adding a new 16-year-old driver will cost about $2,500 per year, on average. The figure translates to an additional $130 each month.
However, compared to the cost of acquiring a separate auto insurance policy for your new driver—roughly $3,700 annually or over $300 monthly—the initial expense might not seem as burdensome.
Over time, as your children gain more experience and leave their teenage years behind, rates will generally decrease. This is based on studies showing that teen drivers are four times riskier than drivers 20 years or older.
Of course, the computation is only an estimate. Each insurer considers several factors that might jack up or cut your insurance costs.
How to Reduce Your Vehicle Insurance Coverage
However, there are ways you can reduce the premiums by taking advantage of the discounts offered by auto insurance companies like Allstate, for example.
- If your teen completes the teenSMART program.
- If your student driver, under 21, typically parks their vehicle at a school over 100 miles from home.
- If your student driver, under 25, meets all the insurer’s academic requirements.
Like teenSMART, Drivewise is another tool that can help a learner develop good driving habits that they carry as they gain more experience. More than getting brownie points and reducing your auto insurance premium, you enjoy peace of mind knowing that your kid is a responsible driver every time they go out.
Another option is to forgo full coverage for your teen’s vehicle, especially if it’s an older model or not of significant value. While full coverage protects you against theft, collisions, or accidents, a liability-only policy is a more cost-effective alternative.
Benefits of Choosing Allstate Auto Insurance for Your Teen’s Protection
Most insurance companies typically offer similar protection clauses for auto coverage, especially concerning teen drivers.
Allstate, however, has distinct products that would benefit you in the long run.
- Accident Forgiveness — As you know, your premiums will inevitably increase when you get into an accident, especially if you’re at fault. With Accident Forgiveness, it doesn’t matter if your kid is to blame for the crash or collision.
- Rental Reimbursement — Under this program, your vehicle rental costs are covered while your damaged car is at the shop. However, this option does not automatically cover your case when you add your teen to your auto insurance policy. Ask your insurer how.
- Safe Driving Bonus — As the name suggests, you get rewarded for being responsible on the road. So, you earn a bonus every six months your teenager drives without any road accidents.
- Deductible Rewards — Sign up for this program to cut your annual premiums when you add your kids to your auto insurance policy. For instance, AllState will deduct $100 from your collision coverage deductible the moment you enroll in the option. You will also earn $100 in savings from your deductible (up to $500) each year every time you drive without accidents.
Reach Out to Our Agents for More Questions About Teen Driver Insurance
When it comes to protecting your kid, time is of the essence. That’s why our team of experts works tirelessly to ensure prompt responses, speedy processing, and efficient claims settlement. We understand your time is valuable, so we commit to providing you with the fastest and most convenient service possible.
Innovation is in our DNA. We constantly explore cutting-edge technologies and stay up-to-date with the latest industry trends to bring you modern insurance solutions that address your evolving needs.
With Bialke Insurance, you can trust that you’ll always have access to the latest tools and resources designed to simplify and enhance your insurance experience.
Contact us now to see how we can safeguard your future and exceed your expectations. Together, let’s build a secure tomorrow.
