Insuring a Car: Teen-Driver Checklist

Your teen behind the wheel can mean freedom and independence for him or her — and extra worries and expenses for you. But the right insurance coverage can help. Here are five ways you may be able to lower your insurance costs.

• Add your teen to your auto policy rather than open a new one for him or her. Your teen can take advantage of your credit history, driving record, and carrier loyalty, which can all lead to discounts.
• You might consider skipping collision and comprehensive coverage to lower costs if you have an older vehicle with a low value that you could live without. Ask yourself if you can afford the total loss of the value of the car. If you can, then you can probably skip this coverage. But liability coverage, which covers the costs of any accident in which your teen is at fault, is required in many states — and even if it’s not required, it’s still a good idea to have it.
• Opt for a standard car with high-rated safety features, which can offer maximum protection with lower premiums compared to sports cars and luxury vehicles.
• Look into discounted premiums if your teen maintains good grades, completes driver’s education courses, and establishes a safe driving record once he or she has his or her license.
• If your son or daughter will attend a college far from home without a car on campus, ask about a reduction in his or her premium as a result of only driving while home for the holidays or summer.

Having a teen driver may result in a change in your insurance premiums, but the right auto insurance coverage can keep you both protected.