It is a rite of passage. Your teen has gotten his or her learner’s permit and can’t wait to get behind the wheel. However, you have your own reservations, not the least of which is what this will imply in terms of insurance.
While your teens have permits, do they require separate insurance with a learner’s permit or can they simply tag onto yours?
The fact is, in many situations the parent’s policy may be extended to cover the teen learning to drive. However, don’t think your teen is covered under your auto policy until you’ve discussed with your insurance provider.
Speak to your insurer
Once the permit is issued, be sure to alert the insurance company before your teen gets behind the wheel. Otherwise, if there is even a fender bender you may find yourself forking over big bucks for a loss you erroneously thought was covered.
Can you obtain car insurance with a permit?
You can obtain a separate car insurance policy with a permit, and in certain circumstances you might have to. This is another topic you’ll need to discuss with your insurance company.
By double checking with the company on this at the beginning, you enable your insurer to consider any special circumstances that may warrant your teen purchasing a separate learner’s permit insurance policy. If the teen owns the vehicle with his or her name on the title only, it is likely that separate insurance will be a must even with just a learner’s permit. In addition, it enables you to begin the conversation with the insurance company about how best to cover your teen once the full license is obtained.
Picking the right learner’s car
One thing you want to know early is the type of vehicle in which your teen will be learning and driving. If your family has more than one vehicle, it is wise to relegate your teen to the least flashy vehicle or the one with the highest safety rating. A new driver behind the wheel of a practical family cars may be less likely to speed than someone learning on a muscle car, built to go fast – something insurance companies recognize. So if you have options, pick the vehicle that has the lowest insurance rates to help with the rise in premiums. Eyeing the cost The fact is, when your teen becomes a licensed driver and is added to your policy, your rates could increase greatly. According to the Insurance Information Institute, adding a teen boy to an insurance policy could send your rates up as much as 100%, while adding a teen girl could mean a 50% increase. The size of the increase may differ by state. Families can reduce or prevent extra costs in some cases.So, when your teen comes to you with learner’s permit in hand, embrace the rite of passage knowing that you have already looked down the road ahead.
Checking the cost
The fact is, when your teen graduates to a licensed driver and is added to your policy, your rates could increase significantly. According to the Insurance Information Institute, adding a teen boy to an insurance policy could send your rates up as much as 100%, while adding a teen girl could mean a 50% increase. The size of the increase may differ by state.