If you're adding a teen driver to your auto insurance policy, the process can be expensive and confusing. To make sure that your teen driver has the right type of auto insurance policy, it's important to look very closely at your policy.
Here are some of the ways that you can modify an auto insurance policy for a teenage driver.
Coverage
The coverage provided by conventional insurance policies might not be appropriate for a teen driver. To get your teen driver and your family the coverage they need, chatting with an auto insurance agent about these features can be very helpful.
Liability Limits
Most auto insurance policies provide relatively small amounts of liability protection. If an accident causes damage that exceeds these limits, your family will be responsible for covering the remaining amount. To give your family peace of mind, you might want to increase your liability by 10-15% the first year that your teen gets behind the wheel. Although increasing your liability coverage will increase your premium, the additional cost can be relatively small.
Extending an Umbrella
Because you're financially responsible for your teen driver, many families find value in purchasing an umbrella insurance policy. Although umbrella policies differ from provider to provider, the idea is pretty simple, add an extra insurance policy to cover just about anything that might wrong. This can include an auto accident, property damage, and other legal disputes. An umbrella policy can apply to every driver in your household, including your teen driver.
Limited Use
Some insurance providers offer discounted rates for teen drivers in exchange for limited driving usage. For instance, your policy might provide full coverage for teen drivers within a 10-mile radius of home and/or school. If your teen ventures outside the radius, the amount of coverage might decrease significantly. These types of policies are perfect for teen drivers who stick close to home, school, and or work.
Discounts
Auto insurance providers want to keep your business. If your teen driver can demonstrate responsibility and maturity, you can sometimes score discounted insurance rates.
Good Grades
If your teen driver is an exceptional student, your auto insurance provider might be willing to give them a discount.
Safe Driving
Although teen drivers are more likely to be involved in accidents, the probability of committing mistakes decreases as they become more experienced behind the wheel. It's a good idea to visit with your auto insurance agent every few months to revisit the price of your premium.
Contact a company like LA Insurance to learn more.
