What Parents Need to Know About Insuring a New Driver

Adding a new driver to your auto insurance can be a significant milestone and a financial adjustment. Teens bring new risks to the road, often leading to higher premiums. Understand the factors influencing these rates to help you make wise, confident choices.

What Do Parents Need to Know About Insuring a New Driver?

Before you add your teen to your policy, it’s essential to understand how insurance companies calculate risk and determine pricing. The following are some common factors that influence what you’ll pay and how you can manage those costs:

• Increased rates—Insuring a teen typically raises your premium. Insurance companies view young drivers as high-risk due to their lack of experience.

• Type of vehicle—The car your teen drives can impact the cost. Older, reliable models with strong safety records often lead to lower premiums than sports or luxury cars.

• Grades—Many insurers offer discounts for students with a B average or higher. A good report card can mean real savings.

• Driving courses—Completing an approved driver’s education or defensive driving course may lead to lower rates. These courses show a commitment to responsible driving.

• Policy add-on—Adding your teen to your current auto policy is usually more affordable than purchasing a separate one.

Thoughtful planning now can lead to long-term benefits and fewer surprises on your next bill. If you’d like to add a new driver to your current policy or explore other options, Auto Pilot Insurance can help. Our agents can find available discounts and help you secure ideal coverage. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.