A little preparation can help protect your new driver—and your family’s finances. Earning a driver’s license is an exciting milestone for a teenager, but it can also bring plenty of questions for parents. Between insurance changes, choosing a vehicle and setting family rules, there is a lot to consider before handing over the keys. Planning ahead can make the transition safer and less stressful for everyone.
Talk With Your Insurance Agent Early
Don’t wait until your teen passes the driving test to contact your insurance agent. Requirements may vary depending on whether your teen has a learner’s permit or a full license, so ask when they need to be listed on your policy and how the change may affect your premium.
Adding a teen driver typically increases insurance costs because inexperienced drivers have a greater risk of being involved in an accident. Your agent can review your current policy, explain your options and help you prepare for the added expense. This is also a good opportunity to review your liability limits and deductibles to make sure they still fit your household’s needs.
Explore Farmers® Discounts and Savings
Farmers offers several potential savings opportunities for households with teen drivers. Depending on eligibility and state availability, these may include Youthful Driver, Good Student, Distant Student and Shared Family Car discounts. Families may also explore Farmers’ Signal® program, which uses a smartphone app to evaluate driving behaviors such as focused driving, braking, speed, mileage and time of day. Safe driving behaviors could result in savings, while riskier behaviors could affect the premium at renewal. Because program availability and eligibility requirements vary, talk with your local Farmers agent before your teen begins driving.
Choose the Vehicle Carefully
The right vehicle for a teen is not necessarily the newest or least expensive option. Look for a reliable vehicle with strong safety ratings, manageable horsepower and helpful features such as electronic stability control, automatic emergency braking, blind-spot monitoring and a backup camera.
A vehicle’s value, repair costs and safety record can all influence insurance premiums. Before purchasing or assigning a vehicle to your teen, ask your agent for an insurance estimate. A car that appears affordable at the dealership may cost considerably more to insure.
Establish Household Expectations
Insurance is only one part of protecting a new driver. Clear household rules can help teens understand that driving is a privilege accompanied by real responsibility. Discuss expectations regarding seat belts, passengers, nighttime driving, weather conditions, speeding and phone use. Make it clear that driving under the influence—or riding with someone who is impaired—is never acceptable. Your teen should always know they can call you for a safe ride without worrying about an immediate lecture. Consider creating a written parent-teen driving agreement that outlines the rules, consequences and who will be responsible for gas, maintenance, tickets and insurance costs. Revisit the agreement as your teen gains experience. A new driver brings change for the entire household. By speaking with your insurance agent, exploring available savings, selecting an appropriate vehicle and establishing firm expectations, you can help your teen begin this new chapter with greater confidence—and a stronger foundation for safe driving.
Have questions about adding a teen driver to your policy or finding the right coverage for your family? Contact McClain Insurance Agency for personalized guidance, information about available Farmers® discounts and help preparing for this exciting new milestone.
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