Teen Drivers and Auto Insurance: What Parents Need to Know
The day your teenager gets their driver’s license is a mix of emotions. There’s excitement and a little bit of fear, but, for parents, there’s also a big question: “How is this going to affect my auto insurance?” At Univista Insurance Orlando, we understand your concerns and are here to guide you through the process. Here’s what you need to know about teen drivers and auto insurance.
Understanding the Risks
Teen drivers, particularly those under the age of 18, statistically pose higher risks on the road. According to the Centers for Disease Control and Prevention, the crash rate for drivers ages 16-19 is nearly three times that of drivers 20 and older. This is due to their inexperience and sometimes, their propensity for risky behaviors like speeding or distracted driving. These factors are considered by insurance companies when setting premiums, which is why insuring a teen driver often leads to an increase in your auto insurance rates.
Adding a Teen to Your Policy
In most cases, it’s less expensive to add a teenager to the parents’ policy rather than setting up a separate one for the teen. This is because the parents’ policy can offer certain benefits such as multi-car discounts, or lower rates due to the parents’ established credit history and driving record. Each insurance company has different policies regarding when you need to add your teen – some require it as soon as they receive their learner’s permit, while others wait until they are fully licensed. At Univista Insurance Orlando, we’ll help you navigate this process smoothly.
Encouraging Safe Driving Habits
Educating your teenager about safe driving habits is a crucial part of the process. Not only will this help keep them safe, but it could also lead to lower insurance rates. Many insurance companies, including Univista Insurance, offer discounts for teens who complete approved defensive driving courses or maintain good grades. Also, avoiding accidents and traffic tickets will keep their driving record clean, preventing insurance rates from skyrocketing.
Choosing the Right Vehicle
The type of car your teen drives can significantly impact your insurance rates. Vehicles with high safety ratings, lower horsepower, and aren’t brand new are usually cheaper to insure. Before you purchase a car for your teenager, consult with your Univista Insurance agent to understand how different models could affect your premiums.
Reviewing Your Coverage
When adding a teen driver to your policy, it’s a good time to review your coverage. Ensure that your liability coverage is adequate, as accidents involving young drivers can result in significant damage or injuries. Also, consider whether you need collision and comprehensive coverage based on the value and condition of your teen’s vehicle.
Adding a teen driver to your auto insurance policy can seem daunting, but it doesn’t have to be. At Univista Insurance Orlando, we’re here to help you navigate the process, ensuring your teen is adequately covered and that you understand all your options. Remember, every teen’s journey to driving is an opportunity to educate them about responsibility, safety, and the financial implications of their actions. Call us today to discuss your family’s auto insurance needs.