How to Add Your Teen Driver to Your Auto Insurance Plan

It's time to hand your keys to your new driver. It is a big time in their life and in your life. It is also a big commitment you are taking on by offering them this opportunity.

Teen drivers can be very good drivers. Many will never be in an accident. However, there are times when accidents do occur. That is when having adequate auto insurance becomes so valuable. Before you take the step to get your driver on the road, be sure that he or she has the right type of car insurance in place.

Determine Their Need

The first step is to determine what type of auto insurance your teen driver needs. Most often, parents maintain ownership of the vehicle their teen will operate. When this is the case, the teen usually only needs liability coverage. Parents should contact their current car insurance company to add the new driver to an existing plan. This protects the teen from financial loss if he or she is in an accident. It also protects Mom and Dad from losses to the vehicle due to an accident.

Key factors to think about when buying teen driver car insurance include:

• Which vehicles will the teen drive? Add the teen only to those policies to save money.
• Including a teen on a parent's car insurance is significantly less expensive than the teen maintaining his or her own plan.
• Teen drivers cost more, so look for discounts available to them. Good student discounts, for example, can reduce costs significantly.
• Choose a safe vehicle that is affordable to insure. Sports cars or very valuable cars are more costly to insure.
• Always ensure the teen takes driving courses. Taking these courses can help to reduce costs. They may be a state requirement.
• Students who go away to school without their vehicle may need less insurance.
• What safety features are available for the vehicle to reduce costs? Consider anti-theft devices, but also on-demand help buttons.

Work with your existing auto insurance provider to add the teen. It is also possible to select a new policy for the family. This may present additional opportunities for cost savings. Bundling vehicles can reduce costs. It can also help to talk to your insurer about special offers and discounts for student drivers. Finding the right plan can help cut costs significantly.