If you have a new driver in your family, you know how excited they are to (finally) get their driver’s license. While they may feel ready and you may be excited to spend less time chauffeuring, you also may have a mix of emotions including nervousness for them to be on the road and wariness of the added expenses a young driver requires.
Here are a few things to keep in mind when adding a new driver to your insurance:
- Review your insurance coverage to determine the type of coverage you have for your teen. This may include naming them as a driver on your existing cars or obtaining a new policy if you are purchasing them a car of their own. Full coverage or comprehensive coverage will ensure that if your teen is at fault for an accident, your insurance will cover damage to their car as well as any other cars involved. Additionally, consider adding underinsured and uninsured motorist coverage on all your cars to help bridge any gaps in coverage that would result from an accident. It is also worth exploring whether you can add this coverage to your umbrella insurance policy as well.
- Ensure your teen is driving a safe car. Insurance companies will take into account how safe a car is when determining premium costs. When safer cars have claims, they tend to be lower in cost than a comparably less safe car.
- If your teen is in school, see if your insurance company will reduce the rates if your teen is a good student. Many companies will offer discounts for teens with a 3.0 GPA or higher. You may also be eligible for additional discounts by having safety features on the car or installing monitoring systems to review driving speeds.
- Consider shopping around to see if there are better rates. When adding a teen driver, rates will inevitably increase. If you feel that the rate is a bit steep, consider reaching out to an insurance broker who can compare costs of multiple insurance companies for you.
As you approach this exciting milestone in your family’s life, the above strategies could help save on your insurance costs. Please reach out to your JNBA Advisory Team if you have any questions or if you would like to be connected to one of our strategic partners who specializes in insurance.
JNBA is not an insurance agent and no portion of the above should be construed as insurance advice. All insurance issues should be addressed with the insurance professional of your choosing. JNBA nor its employees sell insurance products.
Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from JNBA Financial Advisors, LLC.
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