Are you welcoming a newly licensed driver into your household? While this is a very exciting time for your new driver, you can alleviate your potential stress by understanding how their new status impacts your car insurance policy and coverage.

For parents, the excitement of having a first-time driver in the house is usually tempered with worry. With little driving experience and raging hormones, immature drivers are at a higher risk for accidents. Of course, safety concerns are at the forefront of most parents’ minds. Still, other stressors—like the high cost of insuring your new driver and the financial liability implications of a teen driving mishap—can be reduced with these steps.

Before Getting a Learner’s Permit, Make a Call to Your Insurance Professional

Your insurance agent can explain the costs of insuring a teenage driver. The good news is that insurance rates will drop as your teenager gets older—provided he or she has a good driving record. Therefore…

Involve Your Teen in the Car Insurance Discussion

From the outset, talking to your kid about the relationship between driving a car and the attendant responsibilities, including insurance costs, is essential. Explain and reinforce driving safety tips and the severe consequences of driving infractions or accidents, including increasing the cost of insurance.

Encourage Positive Behaviors

Auto insurers offer discounts or reduced premiums to:

  • Students who maintain at least a “B” average in school
  • Teens who take a recognized driver training course
  • College students who attend school at least 100 miles away from home and don’t bring their car to campus

Choose the Right Auto Insurance Company

It’s generally less expensive for parents to add teenagers to their auto insurance policy than for teens to purchase one independently. By insuring your teenager’s car with your insurer, you may also qualify for a multi-vehicle discount. Insurance companies differ in pricing policies for young drivers, so research prices to find the best fit for you and your teen.

Assign Your Teen to the Right Car

Find out how your insurer assigns drivers to cars. Some insurers assign the driver who is the most expensive to insure (generally the teenager) to the most expensive car. If possible, assign your teen to the least valuable car.

Note that this arrangement has no exceptions; your teen must use only the car to which he or she is assigned, even in an emergency. If your teenager is involved in an accident with an unassigned car, penalties could be imposed, and your premiums might increase.

Increase Your Liability Insurance for More Protection

If your teen gets into an accident, state minimums for liability insurance will not fully protect you from lawsuits. Consider purchasing higher liability coverage. If your teenager is found negligent in an accident and the damages exceed your insurance limits, you will be held financially responsible. You could be sued in court for those amounts not covered by your insurance. Depending on the value of your financial assets, you may even want to have the extra protection that a personal umbrella liability policy provides.

Raise Your Deductible to Save on Your Premium

The higher your deductible, the more money you can save on your premium, so consider raising your deductible from the minimum amount required. You may want to use those savings to increase your liability insurance.

Source: Insurance Information Institute

Read Other Blog Posts

Drowsy

Preventing Drowsy Driving

Every year, the National Sleep Foundation organizes Drowsy Driving Prevention Week to raise awareness about the dangers of driving while fatigued.
Smoke Detector

Daylight Saving Time Change: A Perfect Reminder to Check Your Smoke and CO Detectors

Daylight savings time is a perfect opportunity to keep your home safe by checking your smoke and carbon monoxide (CO) detectors. Time change days are memorable markers, making it easy to establish this habit without any extra reminders.
Flooding

Why Flood Insurance is Essential: Lessons from Hurricanes Helene and Milton

The devastating impacts of Hurricanes Helene and Milton have shown that flood risk isn’t limited to coastal areas. These storms have highlighted a crucial gap that individuals and businesses need to be aware of: flood damage is generally not included in typical home, condo, renters, or commercial property insurance, making a separate flood insurance policy essential for true protection.
Deer

Defensive Driving to Avoid Deer Collisions

With deer mating season in full swing from October through December, drivers face an increased risk of collisions. As deer are more active, especially around dawn and dusk, habitat loss has pushed them closer to roadways. Here’s how defensive driving can help you avoid an accident.
Driving Car

Factors Affecting Your Car Insurance Rate

The cost of auto insurance is influenced by a wide range of factors. Together, these variables shape the overall cost of auto insurance. With this in mind, it can be helpful to better understand how the following elements may impact your rates:
Insurance Policy

Why Personal Liability Insurance is Essential for Homeowners, Condo Owners, and Renters

An essential part of home, condo & renter coverage often overlooked is personal liability insurance, which provides financial protection if you’re legally responsible for causing bodily injury or property damage to another person, both on and off your property.
Spam Phishing Scam

Recognize Spam and Phishing Emails

As more of our daily lives move into cyberspace, hackers, cybercriminals and spam bots may lurk behind every new message that shows up in your inbox. Even robust spam filters may not be able to catch every unwelcome email. Fortunately, you can act as an additional line of defense for yourself and your electronic devices by understanding the warning signs of spam and phishing emails.
Distracted Driving

How Distracted Driving and Texting Impact Your Auto Insurance Premiums

One major reason for auto insurance premiums going up is the rise in distracted driving, especially texting while driving. Distracted driving has become a leading cause of accidents, pushing up costs for insurance companies and, ultimately, leading to higher premiums for all drivers.
Apartment living room

Keep Your Home Safe While on Vacation

Taking a trip and exploring the world is fun, but leaving your home unoccupied has some risks.  Before departing, protect your property from accidents and criminals by considering the following precautions.

Visit Our Auto Insurance Page

Auto Insurance

At Murphy Insurance, we are here to assist you in obtaining the appropriate auto insurance. Choosing the appropriate auto insurance coverage can be overwhelming. Every insurance company has its unique offerings, making it challenging to compare options effectively. That’s where we shine. We simplify the process by helping you evaluate provider and policy choices, seek out discounts, and optimize your car insurance within your budget constraints. Ultimately, our goal is to provide you with peace of mind, knowing that you and your loved ones are well-protected.