The Best Way to Insure a Teen Driver

New drivers, particularly young drivers, have higher insurance rates for 2 reasons: inexperience behind the wheel and immaturity. Here’s how to find protection for you and your new driver.

 

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New Driver? You Need This Coverage

Just like anyone attempting to master a new skill, teenage drivers tend to make mistakes and take risks that more experienced drivers likely wouldn’t. When it comes to insurance, increased risk translates into increased rates.

While there are some things you and your teen driver can do to lower your insurance costs (more on that in a bit), there are certain insurance coverages most new drivers should have and recommendations to get the most out of your insurance coverage:


Increase Your Liability Limit

This section of an auto insurance policy pays for the medical expenses of people you or your family members may injure in a crash. Drivers often have a “100/300” limit, which pays a maximum of $100,000 for a single person’s injuries and up to $300,000 total for the injuries of everyone in the car you hit.

Wondering how much liability coverage you really need? We recommend $500,000/$500,000 limits at a minimum to protect your assets and future earnings from a claim or lawsuit resulting from an accident.

Money Note: Doubling or tripling your liability limit does NOT mean it will double or triple your insurance cost.

Increase Your Property Damage Limit

This portion of a car insurance policy pays for damage you cause to other people’s property or vehicles. We recommend $500,000 limits for property damage. If you think that sounds high, just imagine what it could cost if your new driver caused an accident with multiple cars – or involving a semi-truck. Insurance would help cover the rig and even what’s inside.

Consider Roadside Assistance or Towing and Labor Coverage

This optional coverage goes a long way in providing peace of mind if your new driver is in an accident or has car problems.

Get an Umbrella Policy

This type of coverage is an extra layer of liability protection that picks up where other insurance policies leave off and covers situations other policies may not. An umbrella policy is a totally separate policy, not coverage added to an existing policy. Sold in increments of $1 million, umbrella policies are usually fairly inexpensive, with prices starting around $125 per year.

(Learn more about umbrella policies and how they protect you here.)

Consider Accident Forgiveness

Some auto insurers offer something called accident forgiveness. It’s sort of like a “get out of jail free card” for an at-fault accident. You pay the deductible to get the car fixed but don’t pay an increase in premium at renewal. Penalties for an accident involving a young driver can increase your premium by hundreds of dollars a year.

Each situation is different, so we always recommend talking to an agent. By asking a lot of questions, your agent can make sure you have the best coverage at the best price for your situation. 

Do You Have the Right Coverage? Could You Save Money?

Get an Auto Insurance Checkup

When you work with Bell Insurance, you can relax knowing that when the worst-case scenario happens, we’ll take care of you. As experienced agents, we’ll help you protect what matters with coverage options in your best interest, competitive pricing, stress-free claims, and the high-quality service you expect from Bell.

 

To find out if you have the right coverage – or if you could save money on the coverage you have – get a free, no-obligation insurance checkup from a company you can trust.

 

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Bell Insurance Services, LLC is a wholly owned subsidiary of Bell Bank. Products and services offered through Bell Insurance are: Not FDIC Insured | No Bank Guarantee | May Lose Value | Not A Deposit | Not Insured by Any Federal Government Agency

How to Save Money When Insuring a Teen Driver

No doubt – insuring a new driver can be costly. New drivers, particularly young drivers, need years to learn to avoid simple mistakes on the road. In fact, statistics show teenage drivers have more accidents than any other age groups. And unfortunately, those accidents tend to be more severe and involve more injuries. Because of this, it costs more to insure teen drivers – especially boys, who statistically have more car accidents than girls.

Check out these 7 tips for lowering your teen’s car insurance costs:
Insure-Your-Teen-on-Your-Policy

Insure Your Teen on Your Policy

It’s usually cheaper to insure your young driver on your policy than for them to purchase their own.

Encourage-Your-Teen-to-Get-Good-Grades-

Encourage Your Teen to Get Good Grades

Most companies offer discounts if single, full-time students under age 25 maintain at least a “B” average or are in the top 20% of their class.

Have-Your-Young-Driver-Take-a-Driving-Course

Have Your Young Driver Take a Driving Course

Most companies will give discounts for completion of certain driving courses, such as “Behind the Wheel.” Plus, these courses will often teach new drivers things you might not think to teach them yourself.

Choose Their Vehicle Wisely

The type of car your teen drives dramatically affects their insurance costs. You can also reduce the coverage on an older vehicle from full coverage to liability only. If your car is damaged, you would not have coverage to repair it, but you would have coverage for damage or injuries to others.

How to Choose the Right Vehicle for a Teen Driver 

Buying a car for a teen driver takes strategy. It might be easier to buy the cheap model down the road or give a hand-me-down from an older sibling or grandparent, but that might not be the best option for a new driver. 

When buying a car for a new driver, the most important factors to consider are safety and reliability.

Buying used is a great option, but don’t get anything without anti-lock brakes and front airbags. Large pickups and SUVs can be more difficult to handle for young drivers. And sports cars may be tempting but usually result in speeding tickets, have a higher accident rate and come with higher insurance rates. 

Not sure which vehicle to buy your teen? We can help by letting you know which makes and models are least expensive to insure! Just call our office at 800-369-2501.

(If you’re in the market for a car – whether new or used – read this article for the smartest way to buy a car.)

Teach Your Teen to Build a Good Driving Record

Accidents occur each year because a teen driver was using a cell phone, playing the radio or talking to friends in the backseat. Teach your teen to minimize distractions while driving and only drive when alert. (Make sure to lead by example and be a good role model when you drive!) Insurance rates will eventually drop if your teen maintains a good driving record.

Note: Some states have reduced teen accidents by restricting the amount of time new drivers may be on the road without supervision. Consider implementing a similar policy with your own teenagers.

Increase-the-Deductibles-on-Your-Vehicles

Increase the Deductibles on Your Vehicles

Increasing your car’s deductible can help you save money and reduce the small claims that can hurt your premium over time.

Sign-Up-for-Automatic-Billing

Sign Up for Automatic Billing

Some companies offer a discount if you set up automatic billing from a checking or savings account and go paperless.

Master Your Money in Minutes!

Explore these FREE online financial education courses from Bell:

Do you have the right car insurance coverage for yourself? See how your coverage compares, and learn how to get the best car insurance policy here.

 As soon as your teen starts driving, give us a call at 800-369-2501 or request a quote online, so we can help you take advantage of every discount opportunity possible and make sure you have the coverage you need to protect the driver – and your assets – from a claim lawsuit. 

*Sources include Independent Insurance Agents of America.

 

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If you haven’t yet, now is a great time to teach your teen financial responsibility. Learn how in this FREE course.

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Get an Insurance Quote

Make sure you have the best coverage at the best rate with a free, no-obligation quote from Bell Insurance.

Bell Insurance Services, LLC is a wholly owned subsidiary of Bell Bank. Products and services offered through Bell Insurance are: Not FDIC Insured | No Bank Guarantee | May Lose Value | Not a Deposit | Not Insured by Any Federal Government Agency.