Oh no, My Teen is Driving? When to Insure a Teen Driver.

Teen DriverAs if the parent of a teenager didnt have enough to deal with, insuring your newly licensed teen can be costly – not to mention tricky.

The legalities of auto insurance vary from state to state. That includes the minimum type of coverage that is required and when it is necessary to cover your child on your insurance plan. The first thing to know is that a learning permit provides individuals with permission to drive and is considered a temporary license with certain restrictions.

Waiting for a License

Legally, your child cannot drive without a state-issued driver’s license. When your teen gets his or her permit, immediately call your insurance provider to discuss the situation and figure out an appropriate course for insurance coverage. Even though it is not necessary to insure your teenager until they get a license and pass their road test, if you neglect to inform your insurance company of your teen’s new license, they will more than likely bill you retroactively to the date that your child passed their road test and received their license.

Paying for that New License

Auto insurance is especially costly for teenagers as they are considered the highest liability drivers on the road. Due to that teenage sense of invincibility, the lack of experience and the overall statistics for teen accidents and mortality rates (we know, as a parent that’s the last thing you even want to imagine!), teens are understandably a high risk in the eyes of insurers.

Once your teenager is licensed, you can save money on your auto insurance by insuring them on your policy, making them take additional defensive driving courses (this can certainly be spun as something fun for them to do), ensuring they only drive vehicles with the highest safety ratings (this insures your peace of mind, too!) and encouraging them to keep their grades up for a good student discount. There are also a number of other auto insurance discounts available for all drivers that you may not be aware of.

Having your teen get behind the wheel can be a nerve-wracking (and wallet-wrenching) experience for a parent; but it’s a thrilling time for your teen. Don’t complicate this milestone with unnecessary fretting over insurance; be sure to get in touch with your insurance provider as soon as your teen gets his or her permit. Then you can focus on the big stuff, like enjoying teaching your kid to drive and making sure he or she is a safe and responsible driver (and also one that isn’t quite as costly to insure!).