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We understand that being the parent of a teen driver can be stressful. You worry about if they are driving safely, following the laws, and staying off of their cell phone. Something else you may worry about is auto insurance. Below we will go over some things you will want to take into consideration when getting your teen set up with auto insurance.
Teen Driving Laws
Teens are able to get their provisional permit at 15 ½ and must hold that permit for 6 months before they are eligible to get a driver’s license. During that 6 months, they are required to complete 6 hours of behind the wheel training with a driving school as well as 50 hours of practice at home with a parent or guardian 25 years or older. So the questions that many parents have is: when in this process should my teen driver get auto insurance?
The Transition from Permit to License
Some insurance companies will cover a teen driver on their supervising driver’s (i.e parents) policy while they have a provisional permit without officially adding them to the policy. So what does that mean if your teen is in a accident? The vehicle owner’s policy will extend to cover the teen and they will most likely be added onto the insurance at the time of the accident.
Keep in mind, that is not the case with every insurance carrier. Some insurance carriers want the teen to be added as soon as they receive their permit. The best thing to do is to contact your specific provider for exact details. And don’t wait to do this – contact them even before your teen gets their permit to ensure that your family is fully covered.
How Much Does it Cost to Insure a Teen Driver in California?
Determining the exact cost is extremely difficult to do without speaking to your specific insurance agent. But keep in mind that you have two options when it comes to getting your teen covered. You can either add them to your existing policy or you can sign them up for their own. It will be much more cost effective (up to 30% cheaper!) to add them to your existing policy for several reasons.
Teens are considered high risk to insure. This is because they have no driving history to prove that they are a good driver. Most teens will be considered ‘new drivers’ for up to 3 years and at that point you may see a decrease in the policy rates. In general, though, 25 is the age where you will see a significant decrease in your insurance rates.
Your insurance may already include discounts for bundling auto, home, renters, life, etc. Setting up a brand new separate policy for your teen will cut out these bundle discounts.
Helpful Ways to Cut Costs
- Wait to get them their own car. Adding your teen driver to your existing insurance policy will increase your monthly rate – but adding your teen plus another vehicle will significantly increase your monthly rate.
- Ask about the Good Student Discount. The exact qualifications differ from carrier to carrier, but in general a 3.0 GPA could qualify your student for a Good Student Discount which could reduce your rates.
- Provide proof of completion of Driver Education. Some insurance carriers will add a discount when you provide a copy of the students driver education completion certificate. Contact the Irvine driving school that your teen attended to get a copy to provide to your insurance agent.
Do Not Avoid Getting Your Teen Auto Insurance
Ultimately, it is required that your teen be insured while driving. Attempting to conceal your teen driver for a limited amount of time to try to save on auto insurance can end up costing you. Can you imagine paying your auto insurance for years just to have your teen driver get into an accident and not be covered? Also, keep in mind that auto insurance companies can run a yearly CLUE report on your household when it comes time to renew your policy. They will be able to see that you have a newly licensed driver and ask that you add them to your policy in order to renew.
So, When Should Teens Get Auto Insurance?
The best advice: contact your insurance agent when you and your teen start thinking about beginning the process of getting them licensed. Your insurance agent will be able to go over with you the specifics of your account,tell you what type of rate you can expect, and when exactly they require the teen to be added onto the policy. Most importantly, make sure that your teen keeps up a clean driving record. Ensuring that your teen is a safe driver and keeps a clean driving record will help to reduce any additional auto insurance costs.