Insuring Your Business

If you have teens, you know that getting a driver's license is a pretty big deal for them. It is a symbol of freedom, even if it just means getting to borrow the car on a Saturday night. For parents, however, that driver's license can be an added expense on their auto insurance policy. Here's what you need to know. 

Do you need to add your teen to your auto insurance policy when they get their permit or when they get their license?

While laws vary from state to state and rules vary from insurance company to insurance company, under most circumstances you do not need to add your teen to your auto insurance policy until they receive their driver's license. This is because when they are driving with just a permit, they are technically under your supervision and therefore they are covered as an extension of your coverage.

Once they get their driver's license, however, they need their own coverage.

How do you add a teenager to your auto insurance policy?

Adding another is simple. You just need to call your insurance agent and let them know of the change. They will want to know your child's name and birthdate and the date that you would like the policy change to go into effect.

How much it will cost to add a teenager and are there any ways to save money?

The cost of adding a teenager to your auto insurance policy can vary, but it will likely not be as much as you fear. Plus, there are a few ways to save money, including:

• Primary driver. Request that your teen is made the primary driver on your least valuable vehicle, which will reduce your overall cost.
• Multi-car discount. If you are purchasing a new or new-to-you car for your teen, be sure to get a multi-car discount.
• Good grades. Some auto insurance companies offer discounts to teens with good grades. If yours gets all As and Bs, send their report card over to your insurance agent.
• Remote monitoring. There are some auto insurance companies that offer discounts to parents who agree to have their teen's driving monitored. This is done through a smartphone app or a device installed in the car. This not only ensures that your teen drives safely but can save you money as well.

Call your automobile insurance agent now so you know what to expect when your teen is ready for their turn behind the wheel.