car insurance

What to Consider When Selecting Teen Auto Insurance

If you have a car and a teenager at your home, then it’s probably only a matter of time before they’re asking for the keys. If teen auto insurance is in your future, here are some things to consider before insuring your teen’s first set of wheels.

Auto Insurance Discounts

There’s no doubt that teens pay more for car insurance when compared to adult drivers. This is because they have less experience and maturity. The good news is that your teen may be eligible for a discount that lands them a better rate. For instance, a teen driver may be eligible for a discount if they maintain a certain grade point average, or complete a certified driver’s training course. Be sure to ask about discounts available for teen auto insurance policies.

Who’s Listed as the Primary Driver on the Policy?

According to the car insurance policy, only the person who drives the car most often is entitled to a “principal driver,” regardless of who owns it. If you would like other drivers in the same household to be beneficiaries, they also need to be listed in the insurance policy.

It’s important to note that listing yourself as the primary driver of the teen’s vehicle (to keep premium costs down) can result in cancellation of the policy, or even denial of a claim.

Third-Party Liability Coverage for a Teen Driver

Teen drivers are inexperienced behind the wheel, meaning they’re more prone to accidents, and they usually like to carpool their friends around. So, it’s essential to make sure they have enough coverage. A third-party liability limit may not be adequate to cover a collision lawsuit. Increasing the liability limit on your teen auto insurance policy is something to take into consideration.

Auto Insurance for Your Teen Driver

We were all student drivers once. While it’s an exciting time for a teenager, it can be a nerve-racking transition for concerned parents. At Michael McGann insurance, we can help you review the best teen auto insurance policies for your situation, and go over any discounts your teen driver may be eligible for. Call us at (925) 447-1744 to discuss the option that’s right for your family.