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Teen Auto Insurance Requirements to Get You on the Road

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Things to Remember...
  • Besides teaching teens good driving skills and constantly monitoring their car usage, parents can also protect their family by getting the best auto insurance for their teenage drivers
  • Most states require parents to provide a minimum amount of insurance for their teenage drivers
  • Some insurance companies will allow you to assign a car to your teenage driver so you might want to put her or him down for the cheapest car you own
  • Talk to your teenagers about safe driving. Even though it is illegal for teenagers to drink, statistics show an increasing number of teenagers are drinking and driving


The thought of a teenager driving can cause parents sleepless nights. But there are some steps that can be taken to ease your stress.

Besides teaching teens good driving skills and constantly monitoring their car usage, parents can also protect their family by getting the best auto insurance for their teenage drivers.

If you are looking for auto insurance for teenage drivers, type in your ZIP code into the FREE quote tool on this page!

According to the Insurance Institute for Highway Safety, the fatal crash rate per mile driven for 16-19 year-olds in the U.S. is nearly three times the rate for drivers ages 20 and over. The fatal crash rate per mile driven is nearly twice as high for 16-17 year-olds as it is for 18-19 year-olds.

These scary statistics indicate the ghastly impact of the combined sense of being indestructible during the teenage years and a lack of driving experience.

Therefore, it is important for parents to not only talk to their teens about safe driving but also research the finer details of insurance for teenage drivers.

Understanding State Laws for Teenage Drivers

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Given the high rates of accidents of teenage drivers, all states have specific laws in place for teen safe driving.

While licensing laws for teen drivers vary, depending on the state of licensure, the process is generally divided into two parts: the learner stage and the intermediate stage.

According to the Centers for Disease Control and Prevention (CDC), when graduated driver licensing (GDL) systems have been put in place, they have shown that fatal and non–fatal injury crashes are reduced by 38 percent and 40 percent respectively, for 16-year-old drivers.

There is a high acceptance of the GDL system within parent groups and law enforcement authorities.

Each stage of licensing has specific elements such as minimum age of entry, length of time per stage, number of hours of supervised driving, hours of the day when the teenager cannot be driving, and the number of passengers they are allowed to have in the car.

Most states allow teenagers to get a learners permit at ages between 14 and 16.

The driver supervising at the learner stage should be a parent, stepparent, grandparent, guardian, or a driving instructor.

Most states require completion of driver education as well. Given the varied requirements, parents should go to their state’s Department of Motor Vehicles and understand the particular laws that apply to their teenage drivers.

Teenage Auto Insurance Facts

Most states require parents to provide a minimum amount of insurance for their teenage drivers.

For instance, the Illinois Department of Insurance requires teenage drivers have a minimum of liability coverage that is split into bodily injury (BI) that will cover passengers of your car, the other car and pedestrians injured in the accident, and property damage (PD) that pays towards damages caused to the other person’s car or property.

The state of Illinois mandates a minimum of $20,000 per person per accident and $40,000 total per accident for BI and PD of at least $15,000 per accident. Other states have similar insurance laws in place.

Adding a teenage driver to your auto insurance policy is likely to raise your premium by a hefty amount. So it is important to take measures to reduce your insurance bill as much as possible!

Saving Tip 1: Shop Around

If you have inexpensive, paid-for cars, add them to your existing auto insurance policy.

Some insurance companies will allow you to assign a car to your teenage driver so you might want to put her or him down for the cheapest car you own.

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Saving Tip 2: Discounts, Discounts, Discounts!

Companies offer a plethora of discounts to teenagers. The popular good student discount is meant for teenagers, who have a minimum B average and can lower the premium by up to 25 percent!

Enroll your teenager in a driver-training course and defensive driving course. Not only will these make your teenager a safe driver, many insurance companies will give you a discount for enrolling in approved training classes.

Low mileage discounts are available if your teen drives limited miles or is away at university.

In fact, if your teenager is away at an academic institution that is over 100 miles away without a car, and will drive your cars only during holidays, you will see a substantial drop in your insurance bill.

Additionally, make sure you are getting all the discounts you deserve such as good driver discount, safety equipment discount, and multi-car discount. You can also bundle your home, life, and car insurance to get a multi-policy discount.

Saving Tip 3: Get a Cheap Used Car

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If you have expensive cars that you do not want your teenager to drive or plan to buy a car for your new teen driver, you will save an enormous amount of money if you chose a safe and cheap car.

According to U.S. News and World Report, there is a variety of cars that meet all budget requirements while keeping your young driver safe.

But remember that when your teenager has his or her own car, rather than one that they share with the family, they are likely to be behind the wheels a lot more. This increases their chances of getting into a car accident.

Tips for Parents

Being a parent to a teenager is a tough job but the stress skyrockets when the teenager starts driving. Parents can help their teenager by teaching them the right driving skills and getting them the right auto insurance.

Before applying for new insurance, make sure you have your teen enrolled in driver education classes.

Besides teaching your teen the right driving skills, this will tell your insurance company that you are a responsible parent. That will help lower your insurance costs.

Talk to your teenagers about safe driving. Even though it is illegal for teenagers to drink, statistics show an increasing number of teenagers are drinking and driving.

According to the CDC, 25 percent of individuals between 15-20 years of age, who died in a car accident in 2008, had a blood alcohol concentration of over .08g/dl or higher.

So it is important that they learn about the hazards of underage drinking and driving.

Teenagers should understand that keeping a clean driving record with no traffic tickets, moving violations, and suspended licenses would help them reduce their insurance rates.

If they are under their parents’ insurance, any poor driving decision will affect how much their parents pay for insurance.

Wearing seatbelts should be mandatory within your household. It has repeatedly been said by traffic police that many fatalities and injuries could have been avoided if the driver and passengers had been wearing seatbelts.

Parents should use the GDL to help their teens get experience in low-risk conditions. Proper supervision and constant monitoring will help keep your teen out of danger.

Keeping their grades up will also help keep their insurance rates low.

Teenagers should also understand the connection between insurance rates and credit rating.

As teens start using credit cards, they should be taught financial responsibility and the need to make payments in a timely fashion. Otherwise, a poor credit rating will impact not only their insurance rates but also their future activities such as getting a mortgage or life insurance, among others.

Make sure you talk to your insurance company every six months and report any changes such as your teenager graduating from high school, or increasing their GPA etc.

Insurance companies will rarely voluntarily offer you a lower rate. It is up to you to be diligent and aware in order to get a lower insurance bill.

Getting Insurance for Teenage Drivers

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Getting insurance for new teenage drivers can be a stressful and exhausting process.

Before you call your insurance company or insurance agent to add your child to your existing auto insurance policy, do some research online. You will be surprised at the number of options that are available today.

While interacting with new insurance companies, get quotes for different scenarios. Try combinations such as multi-policy insurance that includes your cars, home, and life, your auto insurance policy that includes your entire household, and a quote for insuring just your new teenage driver.

This will give you various options from which to choose. Additionally, remember to ask for discounts that apply to you, your household, and your teen.

It is important that the companies you choose have good customer reviews and strong financial standing. After all, a cheap insurance policy is hardly worth it if you get the runaround in case of an unfortunate accident.

Once you have all the information, it will be easier for you to talk to your existing insurance company and get an acceptable rate from them.

If you are unhappy with your insurance company, click here to put in your ZIP into the FREE quote tool below to compare rates from other providers now!

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