A teenager turning 16 is an exciting day for the teenager and a horrifying day for the parents. Fortunately, just because your teenager is of legal age to drive does not mean he/she needs to drive. Bicycles, walking, and public transportation are all great options if you live in an area where they are realistic options for getting your teen where he or she needs to go. If, on the other hand, your teenager needs to drive, there are a few things you are going to want to know about auto insurance.
No, Insuring Your Teenager Isn’t Optional
Typically, every insurance provider will require all licensed drivers in your household to be included on your insurance policy. This is true regardless of if they are driving your car or not. For this reason, you need to let your insurance provider know when your child gets his or her permit as well as when he or she gets his or her license. Fortunately, teenagers are not usually listed on the policy until they are licensed. When your teenager is driving the car with a permit, there should also be a licensed driver in the car. It is the licensed driver who needs the insurance.
If you happen to be divorced or only have partial custody of your teenager, you will want to talk with your insurance company regarding insurance as every company has their own guidelines on the matter. It may be enough for the primary custodial to have your teenager on his/her policy, but you may have to put your teenager on your policy as well.
A Named Exclusion
The only way for you to avoid an increase on your premium for adding your new teenager driver to your policy is to name him or her as an exclusion. Naming your teenager as an excluded driver is your way of agreeing with the insurance provider that he or she will not be covered in the event of an accident.
Only Assign Your Teen To One Vehicle
If your household owns more than one vehicle, you only have to assign your new teenage driver to a specific vehicle. Just talk to your insurance provider to figure out which vehicle would be the cheapest to add your teenager to.
As you are making your final choices regarding your new teenage driver and your auto insurance, don’t hesitate to ask your insurance provider about discounts. If your teenager, for example, gets good grades in school, your insurance provider may offer some sort of “good student” discount.