We Specialize in Teenage Driver Insurance

teen-insurance

April 29, 2016

Blog

Adding a teenage driver is possibly the largest price change made to an auto insurance policy. We receive many fearful calls from parents asking “How much does it cost to add my teenage driver?” Every customer adding a young driver is re-quoted with all our carriers because we know something most consumers do not: Teenage driver insurance rates vary drastically company to company. Some companies charge two or three times the rate as others for the same youthful operator. The only way to find out where your teen fits best is pricing with as many “A” rated companies as possible. Call 630.947.7980 or email anthony@trunnellinsurance.com and we’ll give you 10+ insurance rates and tailored advice for your situation.

It’s always cheaper to add teenage drivers to your family policy versus a standalone policy.

Here’s why:

They’ll share savings you get for things like owning a home, credit history, being married and (potentially) multiple vehicles in the household.

Many times they can be rated as occasional instead of a primary operator.

Insurance companies rate standalone teen policies higher because most teens aren’t covered standalone unless there’s a problem with driving record or behavior.

You’ll be liable for any damage caused by a driver under 18 regardless if standalone. Reasonable rates begin to appear in the low 20’s due to 5+ years driving experience and maturity. If possible, wait and put them on their own then.

Teen Insurance: Your Guide for Teen Insurance

Policy Change Precautions:

  1. Review liability limits to confirm there is enough to protect your assets (home, savings, income, etc)
  2. Consider purchasing a Personal Liability Umbrella Policy to cover excessive litigation
  3. Add Accident Forgiveness to the policy to control potential spikes in premium due to a youthful operators higher probability of accident (1 in 5 16 year olds are involved in an accident during their first year of driving)

Check your state insurance laws to make sure your young driver doesn’t break a youthful driver restriction unknowingly (curfew, too many passengers in vehicle, etc)

Rules for Illinois:

https://www.cyberdriveillinois.com/departments/drivers/teen_driver_safety/gdl.html

Teenage Insurance Myths

“Insurance follows the car, not the driver, so young drivers don’t need to be listed on the policy”

This is a popular myth perpetuated by many parents and even some agents!! In fact, coverage does follow the vehicle, but only if all regular operators are listed on the policy. It covers a friend or family member not living at home who drives it non-routinely and short-term. Auto insurance policies specifically state in the coverage section that all regular operators must be listed for coverage to apply. If an insurance company finds out the driver causing an accident is a daily or weekly operator it is fully within its right to deny a claim and cancel a policy. The policyholder would then be responsible for all damages. This could lead to bankruptcy and financial ruin if the accident caused massive damage or death. An agent will only repeat this myth because they don’t want to lose your policies.

It’s not worth the risk. Young drivers are much more likely to cause an accident. There are other ways to keep the cost down.

For questions or more information and a free quote, give us a call (630) 947-7980