Your teen getting their first driver’s license is a huge milestone. As it’s an exciting new chapter for the whole family, it also means it’s time to take a closer look at your auto insurance.
Before your new driver hits the road, here are a few things parents should keep in mind.
Notify Your Insurance Agent
Once your teen becomes licensed, it’s important to let us know so your policy accurately reflects all licensed drivers in your household. Insurance companies consider factors such as number of drivers, their driving experience, and which vehicles they have access to when determining your coverage and premium.
Even if your teen doesn’t have their own car or only drives occasionally, they may still need to be listed on your policy. Letting us know right away helps ensure you have the appropriate coverage and avoids potential issues if an accident occurs.
Consider What They’ll be Driving
Whether your teen will be driving a family vehicle or purchasing a car of their own can make a significant difference in how they are insured.
If the vehicle is registered to a parent or another family member, your teen generally can be listed as a driver on that vehicle under its policy. It’s important to let us know whether they will be an occasional operator or the principal operator, as this can affect how the policy is rated.
If your teen is purchasing a vehicle in their own name and registering it to themselves, they will need their own auto insurance policy. A new driver with their own vehicle and their own policy can be quite pricey, especially with limited driving experience. Before your teen purchases a vehicle, give us a call. We can provide an insurance quote and help you understand what the cost of insuring different vehicles may look like before you make the purchase.
Occasional Vs Principal Operator: An occasional operator uses a vehicle only from time to time. While a principal operator is the person who regularly uses that vehicles as their primary means of transportation.
Ask About Available Discounts
Adding a teen driver to your policy can be expensive, but there may be discounts available to help offset some of the cost. Many insurance companies offer savings for good students, completion of an approved driver’s education course, advanced driver’s education course, and other qualifying programs.
If your teen is maintaining good grades, be sure to ask us about a good student discount and what documentation may be required. Driver training can also help your new driver develop important skills while potentially providing an additional insurance discount. Discounts and eligibility vary by insurance company, so it’s worth checking with us to see what your teen may qualify for.
Review Your Coverage
Adding a young driver to your policy is a great time to take a closer look at your current coverage and make sure it still fits your family needs. Teen drivers are less experienced and can present a higher risk on the road, so it’s important to make sure you have adequate liability coverage in place to help protect your family financially if your teen is involved in an accident. It’s also a good time to review your physical damage coverage (collision and comprehensive coverages) especially if your teen will be driving a newer or more valuable vehicle.
The goal isn’t just to find the lowest premium, it’s to make sure your family is properly protected while your new driver is learning and gaining experience behind the wheel.
Talk About Safe Driving
Your teen’s first year behind the wheel is the perfect time to establish good driving habits. Talk with them about putting their phone away, avoiding distractions, following speed limits, wearing a seat belt every time, and never driving under the influence of alcohol or drugs.
It’s also important for them to understand that accidents and certain driving violations can follow them for years. In Massachusetts, an accident or violation can affect your driving record and insurance for up to six years, depending on the type of incident and how it is handled. For a new driver, even one accident or violation can have a significant impact on future insurance costs. Safe driving from day one can help protect both your teen and your family’s wallet.