According to the Federal Highway Administration, there are about 10 million teenage drivers on the road each year. Many of them are still in high school and are on their parents’ insurance.
When your teenager gets their license or permit, you need to figure out how and when to include them in your auto insurance coverage.
But how do you add teenage drivers to your current policy? When is it a good time to do so? How can you save on your policy after adding a new driver?
Those are some of the questions we’ll be answering today. If you’ve got soon-to-be-teenage drivers in your home, follow this guide to get the best auto insurance coverage in North Carolina.
Why You Need to Add Your Teenage Drivers to Your Insurance Policy
Why do you need to add your children to your auto insurance policy? And when is it a good time to do so?
It’s important to note that every insurance company is different. Some companies in North Carolina might have different policies about who you need to add and when to do so.
As such, you must talk to your insurers beforehand. Generally speaking, you’ll have to add your teenage driver to your auto insurance if they:
- Just got licensed
- Live in the same house with you
- Have access to your car
Getting car insurance for a teenager means they’re properly covered if they’re ever involved in an accident. You might also be charged with fraud if you fail to include a teenage driver in a policy.
When to Add a Teen Driver to Insurance Policy
Many parents get confused as to when exactly they should expand their coverage. Should it be when a driver gets their permit? Or should you wait until they’ve got their full license?
In terms of timing, insurance policies vary by state. In North Carolina, your teenage driver won’t need insurance if they’re on their permit and a supervisor is with them.
However, once they get their license and are driving on their own, they’ll need insurance. Therefore, it’s advised that you contact your insurance company as soon as your child gets their license.
How to Insure a Teenage Driver
Once you’ve decided that your teenage driver needs to get insured, there are a few specific steps you need to go through. Here are those steps:
- Contact your insurance agent about when exactly your child needs to be insured
- Obtain a quote for adding teenage drivers to your existing auto insurance policy with higher liabilities, preferably about 100/300/100
- Contact other insurance companies and shop around for quotes to get the best rate possible
- Once it’s time, add your teenage drivers to your current policy, or a different policy that’s cheaper
- Make sure that you’re asking for discounts whenever you add someone
- Monitor where your child going for the first few months and make sure that they’re showing good driving behavior
- Shop for the best prices at every renewal or every year to ensure you’re getting the cheapest rate possible
- Talk to your insurance agents about any new discounts to save money
Cost of Adding a Teen Driver to Insurance Policy
So how much does it actually cost to add a teenage driver to your auto insurance policy?
In North Carolina, insurance payers will get about a 123% rate increase for adding a 16-year old driver to their auto insurance policy. This increases the cost of insurance from about $1,100 to nearly $2,600.
Given this cost increase, how much coverage do you need for teenage drivers in North Carolina?
How Much Coverage Do Teenage Drivers Need?
Most insurers in North Carolina will recommend getting full coverage for your teenage drivers. This means you should look for the following factors:
- $100,000 in liability pay for injuries to others, and up to $300,000 per accident
- $100,000 to pay for damages to other drivers’ property or vehicles
- Coverage to pay for damage from fire, hail, flooding, theft, etc.
Remember that if your child is involved in an accident, it’s the parent’s assets at risk when there’s a liability claim. That means savings, investments, home equity, and other resources are at risk.
Getting a Good Deal on Car Insurance for a Teenager
With such an increase in insurance payments, finding ways to save on your policy becomes crucial. While avoiding this price hike is near impossible, you can limit the increase in a few different ways.
If your child is getting good grades in school, your insurance company might provide benefits. Not all companies do this, but those that do offer up to about 20% rate discounts.
Going through a comprehensive driving course means your child won’t be getting in many accidents. This usually translates to savings and discounts down the line.
“Student Away” Discount
Auto insurance companies usually give you a discount if your child is going off to college at least 100 miles away and they’re not taking a car with them. Since they won’t be driving very often, policyholders can get a small discount. Remember to talk to your insurance agents whenever this happens.
Eventually, good behavior pays off. Many North Carolina insurance companies offer good driver discounts if your child goes ticket-free for a year or two.
Getting a car loaded with safety features can actually improve your insurance rate. Many North Carolina insurance companies offer discounts for abundant safety features as long as you don’t own a sports car. Anti-theft devices, adaptive cruise control, and lane departure warning systems are just a few of the features for which you could get a discount.
Get the Best Deal on Your Teenage Driver’s Insurance
Including teenage drivers in your insurance can be a confusing process, but it needs to be done one way or another. Use this guide to make it as straightforward as possible and find ways to get North Carolina auto insurance discounts.
Looking for a quote for your teenage driver’s auto insurance policy in North Carolina? Contact us today, and we can get you started!