Handing over the keys to your teenager is a big moment—for them and for you. While it marks a new level of independence, it also comes with serious responsibilities, including making sure your insurance coverage is ready for this milestone. Before your teen hits the road, here are a few important things to review to help protect your family, your finances, and your peace of mind.
Understand Who Owns the Vehicle
If your teen will be driving a family vehicle, they can likely be covered under your existing policy. If you plan to buy a separate vehicle for them, ownership matters. A car titled in your teen鈥檚 name may require a separate policy, depending on your insurer. Before making any purchases or policy changes, speak with your insurance agent to determine the best setup for coverage, cost, and flexibility.
Review Your Insurance Coverage
Most auto insurance policies require you to inform the insurer when a new driver is added to your household. If your teen is licensed and living at home, your insurer likely needs to include them on your policy, even if they鈥檙e just an occasional driver. Failing to report a teen driver could result in denied claims or gaps in coverage.
Adding a teen to your auto policy may increase your premium, but some insurers may offer discounts for good grades, safe driving courses, or driving vehicles with strong safety ratings. Our insurance agents can check for insurance discounts that might be available to you.
Teen drivers are statistically more likely to be involved in accidents. That鈥檚 why it鈥檚 important to make sure your liability limits are high enough to protect your assets if your teen causes an accident. You may also want to consider collision coverage if your teen will be driving a newer or more valuable vehicle. This can help cover the cost of repairs if the vehicle is damaged, regardless of who is at fault.
If you鈥檙e concerned about the potential financial impact of a major accident, an umbrella insurance policy can provide extra liability protection beyond your auto policy limits. This added layer of coverage is often affordable and can offer peace of mind, especially with a new driver in the household.
Set Expectations for Safe Driving
Insurance is important, but avoiding accidents is even better. Talk to your teen about distracted driving, speeding, seatbelt use, and safe driving habits. Consider creating a parent-teen driving agreement that outlines expectations and consequences.
Some families also choose to use driving apps or telematics programs that track speed, braking, and phone use. These tools can promote accountability and may even help lower premiums over time.
It may seem obvious, but make sure your teen has the correct type of driver鈥檚 license or permit before getting behind the wheel. Many states have graduated licensing systems that include restrictions for new drivers, such as curfews, passenger limits, or supervision requirements. Knowing and following these rules is essential for staying safe and legal.
Protect Your Teen and Your Family with the Right Coverage
Getting your teen on the road safely starts with smart preparation. From updating your insurance policy to setting clear rules, taking the right steps can help you avoid surprises and stay protected. If you're unsure how to update your policy or what level of coverage makes sense, contact us today. We鈥檒l help you review your options and find a solution that balances safety, coverage, and cost.