So many feelings and thoughts go through your mind when you have a young driver who is set on getting on the road. One of those thoughts is, will my insurance cover him/her? And how much will it cost me? Fortunately for you there have been many parents before you who have gone down the road of uncertainty and have given insurance companies an idea on how to handle this.
The first thing you need to know is that while your young driver has a permit your insurance should not increase at all or not much depending on the insurance carrier (I am a Progressive Independent Insurance Agent and I know for a fact Progressive charges $0 to add a driver with permit only). The reason is simple while, they have their permit it is a requirement to drive accompanied by a licensed driver over the age of 21.
Your policy may exclude your young driver or it may simply not be covered. Studies show that young drivers are twice as likely to be involved in an accident than an older driver, so before he/she gets in an accident, contact you agent.
After some time has passed (and they now qualify to get an actual license and not just a permit), the next step will be to take your raging teen to take their written and practical exam. If they pass, congratulations! You are off the hook or are you? You call your agent and tell him your child is ready to get their own insurance and when your agent hits you with that 4 digit number (premium dollar amount), you squeal! Yes insuring a young adult who has no credit history or driving experience is going to cost a lot of money.
What your agent suggest next is of critical importance; you can pay thousands of dollars to establish their insurance responsibility on their own policy or you can add them onto your policy as a driver which will save you hundreds of dollars while giving you all the responsibility under your policy for any accidents, damage to vehicle, payment of premium increase due to traffic violations etc… The choice is yours but it is a topic best discussed thoroughly with your family and insurance agent. Good luck and make sure you enforce safe driving habits on your young driver.
Visit us at www.keepaustininsured.com for more information.