My teen just got their license…
First. Take some deep breaths.
Second. Call your insurance agent and get them added to your auto insurance policy.
A teen getting their license is an exciting time. While I’m sure you’re eager to have a little relief from driving your teen to the movies, the mall, sports practices – basically all over the place, you (and your bank account) are probably not excited about the inevitable increase that will happen on your auto policy.
I’m here to help prepare you for the day your teen gets their license.
There will be a premium increase.
What’s the damage going to be?
While each individual account is completely different based on literally 9 septillion different factors, on average, you can anticipate anywhere from a $550 to $850 increase every six months on an auto policy where the new driver is a part-time operator. For instance, if you have a policy with two adult drivers and two vehicles, the new teen driver added will be considered a part-time operator. Again, this is just an average estimate and factors such as driving history and discounts will affect what your premium will be.
But what if I’m going to get a vehicle for the new teen driver?
Then you may want to practice some meditation before calling us for those quotes… Kidding. Kind of. There are a few things you can consider when looking at vehicles for your teen.
Opting Out of Collision.
One of the easiest ways to keep the premium down would be choosing an older vehicle that you can consider not adding collision to. Collision is typically a large chunk of the premium and this can definitely help keep your price down.
Quote Before You Buy.
This is our job. It’s what we are here for at Fitzsimmons Insurance. To help educate you and provide you with knowledge to make the best purchase. There are some vehicles that we know typically have higher rates with young drivers – for instance Chevy Cobalt’s and Pontiac G6s. This is not to say you should or shouldn’t purchase one, but we strongly suggest you call us during your search for vehicles so we can quote them for you and help you financially plan things out.
Good Student and Driver Training Discount
While every company varies, two of the biggest discounts when it comes to youthful operators are the Driver Training Discount and the Good Student Discount. When you call to add your new driver to the policy, make sure to have a copy of their most recent grades (B or better) and their Driver Training Certificate to be able to send to your agent. They’ll need to send it into the company to apply the discount.
Safe Driving Discount
In addition, some companies offer devices that monitor driving. Good driving habits can earn you additional savings and it can help you keep an eye on the way your new teen is driving. *More on these available programs to come in a future post*
Adding a young driver is great time to review your account with your agent. A young driver means an increased risk and you want to make sure you’re fully protected. Review your coverage and talk to them about other options available such as an umbrella policy.
So when your new driver comes out of the DMV with their license and big grin, take the obligatory #socialmediapic and then give us a call. We’ll help you get through it!
Don’t hesitate to contact our office with any questions at all by giving us a call or using the contact form on our site. This is meant to give you a brief overview – not get into the weeds of teen drivers.