Teen Drivers: Everything Your Kids Need to Know About Auto Insurance

Becoming a teen driver represents a rite of passage for many in the U.S. It’s the parents that have to worry about the financial impact of teen drivers, especially because their premiums tend to go up when they add them to their policy. Having a little bit of information can help teen drivers feel better about the process of purchasing sufficient auto insurance. It’s better to protect the family than to leave something to chance.

How Much Will It Cost?
Often, the family can save on auto insurance by merely adding teen drivers to one or more existing vehicles in the household. If the family will go out and purchase another vehicle, that will be an additional expense on the group policy. Teen drivers need the coverage required by law, but parents should also consider adding uninsured/underinsured motorist coverage. This is perfect for cases when the teen driver is not at fault in an accident and gets injured or the vehicle sustains damage or becomes a total loss.

How Much Will Teens Pay?
Some parents can only afford to add teen drivers to their insurance if they will work to help pay the difference in the family insurance premium. Insurance companies like AALL Insurance can help consumers with teen drivers in their household to calculate the difference in insurance premiums for multiple providers based on information submitted via a web form, but not all of this can be done online.

Will We Need High or Low Deductibles on a Per-Accident Basis?
Many insurance policies in Tempe, AZ, and beyond will include deductibles. This is an amount that the policyholder must pay before the insurance kicks in. For example, for getting the vehicle fixed under the family’s collision insurance and for paying out medical bills under personal injury or medical payments coverages, a deductible might apply. A low deductible, such as $200, might not be hard for the family to afford, but a high deductible, such as $1,000, could make it difficult to complete necessary car repairs or to get medical bills paid. If the family doesn’t have the money for the deductible, it takes time to get a claim processed.

It’s important for teen drivers and their parents to look at different car insurance quotes before making a purchase. The family can compare the benefits of different premiums based on the amounts of coverage and the applicable deductibles for each type of coverage. Young drivers can strike a balance between affordable monthly premiums and affordable deductibles.

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