What Parents Need to Know About Auto Insurance for Teen Drivers

Adding a teen driver to your auto insurance policy can be a stressful experience for parents. Teen drivers are statistically more likely to be involved in accidents, and as a result, insurance costs can jump significantly once you add a newly licensed driver to your policy. But with the right information, you can make smart choices that protect your family and your wallet.

Why Teen Car Insurance Costs More

Insurance companies view teen drivers as higher risk because they have limited driving experience and a higher likelihood of being in crashes. As a result, premiums can increase substantially when a teen is added to a policy. In many cases, adding a teen driver can raise your annual premiums by thousands of dollars.

Because of this, most parents choose to add their teen to their existing policy rather than purchasing a separate policy just for them. This strategy typically costs less than having your teen insured on their own and lets you keep important discounts like multi-car or bundling discounts.

While minimum state-required insurance may technically satisfy legal requirements, experts generally recommend stronger coverage when it comes to teen drivers. Teens are more likely to get into accidents, and higher liability limits help protect your family’s assets if they cause significant damage or injury.

In addition to liability, it’s worth discussing collision, comprehensive, and uninsured motorist coverage with your agent. Although these add to your premium, they can reduce your financial burden in the event of an accident, especially if your teen is driving a newer car or one with high repair costs.