For most teens, getting a driver's license is a significant milestone. Being able to legally drive a car is an indication of independence, and it is usually the first time that parents are trusting their children with a major responsibility. Teens are expected to have some mishaps as beginners. However, as parents, it is in our best interests to make sure that our children know what could happen if those mishaps occur, especially when auto insurance can be affected. Here are a few things that your teen should know about their auto insurance coverage.
The Cost
Auto insurance premiums are high for new drivers, and rates do not usually begin to decline until the driver reaches the age of 25. Fortunately, there are some things that teens can do to reduce insurance rates. Some insurance companies offer discounts up to 25% to full time students that maintain at least a B average in school. Also, young drivers can receive discounts by obtaining a certification for taking a driver’s education course.
They May Not Be Covered at Work
If your teen uses your car or their car for a job that involves delivery (pizza, newspapers, etc.), please know that your personal insurance policy will not cover any claims that occur while your child is working. The good news is that there are some insurance companies that will provide supplemental coverage to a personal policy for delivery drivers. If your insurance company does not provide this, your teen may be able to get coverage through their employer. You or your teen can also look into obtaining a commercial vehicle policy. Just expect to pay a higher premium.
Don't Drink and Drive
It goes without saying that getting a DUI, especially for a teen, can be quite a regrettable experience. And if as a result your teen's driver's license is suspended, they will most likely have to file for SR22 coverage. According to the Select Insurance Group website, SR22 coverage is most often required after you get cited for driving without insurance, DUI or other major traffic violations.
While getting a driver's license and beginning to drive independently is exciting for your child, make sure to convey to them the amount of responsibility that comes with having this privilege. Ensuring that your teen has a solid understanding of this responsibility will help them to get off to the best possible start when it comes to taking the wheel.