Nothing marks growing up more vividly than receiving one’s driver’s license, a momentous event which often causes parents equal amounts of joy and fear.
Assuming you live in a state where mandatory car insurance coverage exists for teens isn’t automatically necessary; rather, this decision depends on both you and your insurer.
It’s Not Necessary
No parent ever wants their child’s first driving lesson to come around; but that day can be especially nerve-wracking for both of them! While it’s an important milestone in young person’s lives and exciting to witness first-hand, parents may feel their control ebbing away as their teen takes control of driving themselves for the first time. Many may worry that an increase in insurance premiums or new driving laws might increase alongside their anxiety over teenage drivers taking control of vehicles for themselves.
Your jurisdiction and insurance provider will ultimately decide whether it is necessary for you to add your teenage son or daughter as a driver on your policy, but in general it’s a good idea if they use any vehicle that belongs to or registered under your name – especially if this vehicle will be driven frequently. A high liability limit coverage can help safeguard you in case of an unintended collision caused by them.
When selecting the ideal plan for your family, it is advisable to work with an experienced local insurance agent. They can perform a complete risk analysis and explain all your available options. It is also wise to keep in mind that if you elect not to add your teen driver and they cause an accident themselves, all damages must be covered out-of-pocket; additionally it would be wise to discuss personal injury protection (PIP) coverage as this can cover medical bills that fall outside your liability coverage limits.
If you decide to keep your teenager off of your policy, it is advisable to get them their own car insurance as soon as they obtain their permit. Furthermore, ensure they only drive vehicles equipped with anti-theft devices and maintained in accordance with regular maintenance. Furthermore, speak to your agent about obtaining an excellent student discount that could save up to 25% off their rate until they turn 25 years old.
It’s a Good Idea
Teenagers’ first license can be an exciting milestone of independence; yet for their parents, handing them over the keys may also be nerve-wracking and anxiety-inducing – especially considering the risk of car accidents is real and the subsequent costs incurred will undoubtedly skyrocket insurance bills.
There are, however, ways you can reduce the effects of having a teenage driver on your Houston car insurance premiums. Walker suggests purchasing personal injury protection (PIP) coverage to cover any medical costs caused by accidents your teen might cause; PIP is usually an optional add-on that can be added onto any policy in addition to standard auto liability insurance required in Texas.
One way to mitigate the financial strain associated with adding a teenage driver is by searching for better rates. This may mean seeking out an entirely new policy or just making adjustments on existing policies to cover more vehicles or simply switching around coverage on existing policies. You could also ask your agent whether there are any discounts that apply, such as good student or safe-driver incentives that might apply when adding one more.
If your assets could be at stake if an accident caused by your teen was to result in legal action, consider increasing his/her auto liability coverage to 100/300/100 or greater to protect them in case of serious incidents. This will protect them in an emergency and protect their future success.
If you have a positive relationship with your insurer, they may offer to exclude your teen after accruing certain number of tickets or accidents that increase the cost of premium. If this is something you want to pursue, discuss it with your agent and complete and sign a driver exclusion form – often this option can be cheaper than purchasing separate policies while giving them time to develop driving skills under watchful eyes.
It’s a Bad Idea
There is no moment in their teen’s life when they reach 18 that causes greater questions and mixed emotions than receiving their driver’s license. While this marks the transition from childhood to adulthood, it also brings with it a higher risk of car accidents; therefore some insurance providers require you to add them immediately when they receive their permit or wait until they become licensed and require coverage.
Though it might be tempting to skip adding your teen driver in order to save money, this can be an expensive mistake. Teen drivers are seen as higher risks than more experienced older drivers and their rates reflect this fact. When adding them as drivers on your policy it’s wise to increase coverage limits to account for their inexperience and protect yourself in case an accident does happen.
Get to know your insurance agent to explore discounts that are available for new teen drivers. Telematics devices often allow for better monitoring of driving habits and can reward good behavior with reduced insurance premiums; additionally, adding your teen driver to the primary vehicle instead of one only used occasionally may save on premiums.
If you have the funds available to you, consider switching insurance providers in order to find more competitive rates. While excluding your teenager from your policy may seem like a significant sacrifice, it may be more practical and realistic than forcing them into purchasing their own policy when they have had multiple accidents or tickets that might incur higher premiums over time if forced into purchasing one of their own and do not possess an excellent driving history.
It’s Not Required
At an American teen’s most pivotal milestone is getting their driver’s license. Parents may experience both excitement and anxiety as their child enters into adulthood for the first time. While the freedom that driving offers can be wonderful, parents must also prepare them for potential risks associated with it, with insurance often providing the ideal solution to this.
Texas car insurance policies automatically cover any household member who drives your vehicle, meaning there’s no need to add your teen or disclose them until they have obtained their permit; though keep in mind that adding them could lead to higher premiums.
Your car insurance agent may advise that your teen remain on the family policy until they obtain their license and are ready to purchase their own policy. This allows you to provide them with quality protection against damage they cause as well as medical or personal injury protection costs.
Your insurance provider will take into account your teen’s risk of accidents when setting rates. According to the Insurance Institute for Highway Safety, teens are three times more likely to be involved in fatal car accidents than drivers aged 20 or above – for this reason it may be wiser for you to include them on the policy.
When making the decision whether or not to add your teenager as a policyholder, always contact their insurance provider directly. They can advise you on the best options and discounts that might apply; some insurers provide them for good grades, taking driver ed courses or being part of their school community.
Texan Insurance is an independent agency that writes individual car policies from over 40 providers. Our experienced agents specialize in finding the ideal coverage for you and can guide your teenage driver toward selecting an appropriate policy. Contact or email us now to discover more of our coverage options, and how they could save money on car insurance in Texas.