Gottier Investments

860-683-1245

Insurance Read Time: 2 min

Buying Auto Insurance For Teen Drivers

Driving may be a rite of passage for teenagers, but for parents, having a teenage driver can be stressful and expensive. Your child will need auto insurance coverage as soon as they receive their driver’s license. Here are some important considerations.

Determine Whether to Add Your Child to Your Policy or Purchase a Separate Policy

  • Check with your insurer to see how your premiums may be affected. Expect that they could rise dramatically; however, savings may be found through multi-vehicle and good student discounts.
  • If your child is driving an “old beater” that doesn’t require comprehensive or collision coverage, a separate policy, in limited instances, may save you money.
  • Discuss your options with your insurance agent.

Consider Your Teen Driver’s Coverage Choices

  • Most personal auto policies won’t cover a driver transporting goods or services in exchange for a wage. So, if your teen is planning on becoming a pizza delivery driver, for example, contact your insurance agent to determine if additional coverage is needed.

Find Ways to Save Money

  • Consider vehicles with high safety ratings over sportier, more-expensive cars.
  • Think about raising your policy’s deductibles.
  • Reassess your need for collision or comprehensive coverage.
  • Ask about “occasional” or “pleasure only” discounts, which may apply to children away at school.
  • Explore usage-based insurance, which involves installing a device in the vehicle that monitors driving behavior and rewards good driving. It’s also a way to keep tabs on your teen’s driving.
  • Have your teen complete a driver’s education course.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

 

Related Content

You Would Rather Be...

You Would Rather Be...

Are you a thrill seeker, or content to relax in the backyard? Use this flowchart to find out more about your risk tolerance.

Understanding Marginal Income Tax Brackets

Understanding Marginal Income Tax Brackets

An inside look at how marginal income tax brackets work.

Insurance Needs Assessment: When You're Newly Married

Insurance Needs Assessment: When You're Newly Married

Marriage changes everything, including your insurance needs.

 

Have A Question About This Topic?







Thank you! Oops!

You May Need to Make Estimated Tax Payments If…

Have income that isn’t subject to tax withholding? Or insufficient withholdings? You may have to pay estimated taxes.

Social Security: Maximizing Benefits

There are other ways to maximize Social Security benefits, in addition to waiting to claim them.

Spotting Credit Trouble

The wise use of credit is a critical skill. These 10 questions will help you assess your skill level.

View all articles

Assess Your Life Insurance Needs

This calculator estimates how much life insurance you would need to meet your family's needs if you were to die prematurely.

What Is My Current Net Worth?

Use this calculator to estimate your net worth by adding up your assets and subtracting your liabilities.

Annuity Comparison

This calculator compares a hypothetical fixed annuity with an account where the interest is taxed each year.

View all calculators

Retirement Plan Detectives

A couple become Retirement Plan Detectives, searching records from old employers.

The Long Run: Women and Retirement

For women, retirement strategy is a long race. It’s helpful to know the route.

When Special Care Is Needed: The Special Needs Trust

A special needs trust helps care for a special needs child when you’re gone.

View all videos