New Driver Car Insurance Answers
Learner's Permit & Auto Insurance
With the excitement of finally being allowed to drive, comes the expensive reality of buying auto insurance for new teen drivers. While all states require a driver to have car insurance, whether or not a teen driver with a learners permit must have insurance varies between states and insurance companies. Insurance companies are able to make their own internal policies as to how they will cover drivers with learning permits. Some auto insurers will cover a teen driver with a learners permit under the parents policy without being added and some will only cover them if they are specifically added to the policy. As the underwriting rules are different for each auto insurer, it is important that the parents of new teen drivers contact their insurance company as to the specific requirements of their policy.
What are the differences between a Learners Permit and a Drivers License?
A learners permit allows new teen drivers to drive on the road, but with restrictions. They cannot drive alone, but must be accompanied by a licensed adult driver. Some states may also restrict the amount of hours and times of day that teens can drive with a learners permit. As the purpose of a learners permit is to allow the new driver the time to learn how to drive under the supervision of an experienced driver, learners permits generally expire after 60 to 180 days. Within that time frame, the new driver takes a behind-the-wheel drivers test with the hope of passing and getting his or her own drivers license. While a drivers license allows teens to drive on their own, most states have adopted a graduated licensing program. Before they are fully licensed without restrictions, the teen drivers must drive for a period of time with an intermediate license. An intermediate drivers license usually imposes some restrictions on night driving and driving with non-adult passengers in the car.
When to Add a Teen Driver to the Insurance Policy
When to add a new teen driver to the parents insurance policy varies between companies. Some auto insurance companies require that a teen with a learners permit be added to the parents policy, and some do not. Some insurers do not charge an additional premium to add a teen with a learners permit to the parents auto insurance policy, and some insurers may. And even though some insurers do not charge a premium for a teen with a learners permit, they may still want them listed on the policy. Some insurance companies may use a particular date to begin charging insurance premiums, such as a 16th birthday or the date the learners permit expires. It's important to get the details of the policy and stay in touch with the insurance company in order to avoid any surprises on the next statement. Once a teen driver gets a drivers license, the insurance company should be notified.
Cost of Auto Insurance for Teen Drivers
The auto insurance rates for newly licensed teen drivers are considerably higher than for other drivers. As a group, drivers under the age of 25 are involved in more accidents than older and more experienced drivers and account for a very high level of at-fault accidents. The high level of accidents is often attributed to youthful immaturity and lack of driving experience. Many teenage drivers practice unsafe and risky driving habits, including speeding and tailgating. Because they pose a greater risk to the auto insurance companies, the auto insurer charges a higher premium.
Ways to Save Money on Auto Insurance for Teen Drivers
While it is expensive to purchase auto insurance for teenage drivers, there are a few ways to lower the cost. Some teens may qualify for certain discounts if they are added to the parents policy that they would not get on a policy of their own, such as safe-driver discounts or multiple-car discounts . For some teens though, the parents insurance company may not always be the best insurance company for them. Another important consideration is the vehicle that the teen will be driving, because the insurance premium will be affected by the make and model of the car. The newer or more expensive the car, the higher the premium amount. Most insurance companies offer a "good-student" discount, which is offered to teens who have a grade point average of B or higher. Some insurers offer discounts if the teen driver completes a safety driving course. To find the policy that provides the desired coverage at the best rate, it is worth the time to shop around and get quotes from several auto insurance companies.
Safe Driving Tips for Teens
For their own safety and for the safety of others, there are several good points that every teen should practice:
- Always wear your seatbelt
- Drive defensively - follow at safe distances and watch out for other drivers
- Limit distractions - such as passengers, cell phones, music, eating
- Don't drink and drive
- Drive the speed limit
Practicing safe driving will not only reduce the likelihood of an accident and make is safer for everyone on the road, but it will also lead to lower auto insurance premiums in the future.