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7 Tips for Insuring Young Drivers

If you have a young soon-to-be driver in the household, you may be wondering about how it will affect your auto insurance. Here’s the vital information you need from the insurance pros at Active Insurance Solutions, working with families in Minnesota, Iowa, and Wisconsin to give them the coverage they need.

Add Your Teen to Your Policy When the Time Is Right

In most cases, you don’t need to do anything when your teen is still driving under a learner’s permit, although it’s a good time to talk to your insurance agent to start planning for later. While your teen is driving with a permit only, they’re covered under your existing policy, so you don’t need to do anything until they receive their actual driver’s license.

At that point, your teen becomes a rated driver. You need to add them to your policy, which will affect your premium and make it more expensive. It’s rarely advantageous to take out a separate policy for your teen.

Ask About Discounts Available

To offset what could be a considerable jump in price because teen drivers are considered high risk, ask about discounts available to you. Often you can combine these discounts if offered by your carrier:

  • Good grades at school (B average or better)
  • Living away from home for school with no vehicle (usually at least 100 miles)
  • Completing a safe driving course
  • Low-mileage driving
  • Insuring multiple cars or bundling insurance for home, auto, etc.

Play with Your Deductible-Premium Ratio

Usually, raising your deductible will lower your premium. The deductible is the amount you must pay on your own before your auto insurance policy pays out when you file a claim. Work with your insurance agent to find a deductible amount you’re comfortable with.

Forego the Sports Car

If you think insuring a luxury or sports vehicle is expensive under normal conditions, try adding a teen to your policy! Resist the urge to buy your new driver a shiny red convertible. If you need another car for your teen, look at used vehicles and less flashy models that test well for safety.

Consider Adding More Liability Coverage

If you’re worried about damages that could cost you more money than your auto insurance coverage provides, there’s always the option of adding more liability protection. Ask your agent about the best way to do this. In many instances, purchasing a personal umbrella policy will give you the coverage you want, up to a million dollars or more.

Use One-Stop Shopping with Independent Agents

Shopping for auto insurance for young drivers can be time-consuming. You can make the entire process less stressful and more efficient by shopping with independent agents like Active Insurance Solutions. We have access to dozens of auto insurance products from more than 20 of the best carriers in the US, so you can select a policy with one phone call and still get the options you desire. Let the experts at Active Insurance Solutions do the shopping for you.

Continue to Work on Defensive Driving

Defensive driving doesn’t stop once your teen completes a driving course or gets their license. You want to continue working on your teen’s driving skills at least until they enter their college years. As your teen gets older and goes without an accident, your auto insurance premium will decrease, and you’ll appreciate having emphasized safety behind the wheel.

Need more information about adding a young driver to your auto insurance policy? Contact Active Insurance Solutions at 952-479-5877 today. If you’re ready to get a quote, simply reach out online, and we’ll help you choose a policy that works for your needs.