If your family includes a teen driver, you may already know that it costs a great deal to cover them with auto insurance. Because of their precarious position as youthful drivers with little experience, you and they need to discuss certain factors that could affect your coverage and your rates. Below are some topics to discuss with your teenage driver.

What Every Teen Driver Should Know About Auto Insurance

It Cost More to Insure them Separately

Normally, it costs more to purchase a separate auto insurance policy for your teen than to add them to your current policy. However, if you add them as a driver, their behavior behind the wheel could affect your rates for years. Any tickets they receive or accidents they cause will stay on your insurance record for at least three years. You should discuss your options with your child before deciding whether to pay more for an individual policy that insulates you a bit from their driving infractions.

Good Grades Equal Savings

Most insurers offer a "good student" discount. Ask your agent how much you could save and what your teen must do to qualify for this discount. Some carriers want to see all A's and B's, while others accept earning a spot on the honor roll or Dean's list. Discuss this option with your teen and let them know how valuable their academic achievement is.

No College Car Also Equals Savings

If your teen attends college at least 100 miles from home and does not take a car to school, you can lower the cost of auto insurance dramatically—even without excluding them from coverage. In other words, your teen can come home for the holidays and be covered while driving your car, but you can still enjoy steep premium discounts because they aren't driving while away at school. Talk to your teen about whether this arrangement works for everyone.

If you need help designing the right auto insurance policy for your family, contact Charles Adams Insurance Agency in Ashland, KY. They have served individuals and businesses in and around Boyd County for more than 100 years. In addition to car insurance, they also offer affordable home and life insurance. Call (606) 325-9709 to request a free insurance quote or message them on their website.