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Newly Licensed Teen: Recommended Insurance Coverage

One of the most exciting times in any teenager’s life is turning 16 and getting their license. For many kids this time is associated with freedom, independence and growing up. One of the scariest times for any parent is their kid turning 16 and getting their license. For good reason, the thought of their child behind the wheel gives many parents anxiety. There are enough things for a parent to be worried about when it comes to their teenager driving, insurance does not have to be one of them. Taking the time to research different insurance types, companies and premiums will ultimately help ease the stress that a parent may be feeling.

The addition of a teenager on families insurance policies will almost always immeditaley make the premiums go up. A rise in coverage is to be expected due to their obvious lack of driving experience. However, there are a few steps that can be taken to keep the cost manageable.
One of the main components that an insurance company will focus on when insuring a teenager, is the type of car that they will be driving and need to have insured. Teenager drivers are at a much higher risk of being involved in a car accident or having speeding issues throughout their younger years. Choosing a sports car for a teenager is not a smart choice when you are trying to keep insurance premiums low. Also focusing on a type of cars theft and break in rate can help to guard off insurance increases. While many teenagers will dislike this piece of advice, picking an older car is a smarter choice.

By choosing a car that has been paid off you are also allowing yourself to only need to carry liability insurance. Being able to drop collision insurance and comprehensive insurance can drop rates drastically.

Staying on top of your child about the importance of a good driving record is not only safe, it can also be truly cost effective. Almost every insurance company offers benefits for a good driving record. Teens that have no accidents or traffic violations are more likely to have an insurance policy with lower premiums.

There are also many discount programs that reward students for having good grades. Your child’s honor roll letter is not only something to be proud of; it can also be something that helps you receive money back.