Car Insurance Basics for Teen Drivers

You have a child close to getting a driver’s license. In no time, he or she will ask to drive the family car – or may even purchase a used one. By Connecticut state law, all drivers must have the minimum insurance, which means your son or daughter needs a policy.
What options are out there? For parents, you have two choices: put your child on your policy, or have your teen take out one in his or her name. Consider the pros and cons.
On Your Policy
In general, if you add your child to your policy, the amount your teen pays ends up being less. As well, he or she benefits from your existing savings, while you may receive a multi-car discount.
Yet, many parents have the following fears:

• Premiums will go up.
• If your child gets into an accident, your rates will spike.
• You’ll have to pay more out of pocket.

In some cases, you might find a few ways to save:

• If your child is driving an older car, customize his or her coverage by excluding comprehensive and collision.
• Increasing the deductible.
• If your child’s away at school for part of the year, try to add usage-based insurance.
• Find discounts applicable to your child: see he or she drives a safe car, attends a safe driving course at an accredited school, can get a student resident discount, or make sure he or she is eligible for a “good student” discount.

A Separate Policy
A recent study from InsuranceQuotes.com indicated that, while adding a teen to the parents’ policy increases premiums by 77 percent, a separate policy ends up being 18 percent greater than what the parents pay in total. While a teen might be able to lower the amount based on the discounts above, certain states charge teen drivers significantly more: Connecticut, in fact, penalizes beginning drivers with premiums 47 percent higher.
Ultimately, for lower rates, he or she has to wait until turning 25. By this point, a good driving record lowers the monthly premiums.
However, the higher insurance is often needed: Teens are three times more likely than adults to be involved in accidents.
With these factors in mind, it’s ideal to shop around for the best rate and coverage for your child. To start exploring the possibilities, contact any of Ion Insurance’s offices.