When it comes time to hand your car keys to your teen, it’s imperative that they’re insured. Many parents have questions about how they should insure their young drivers and secure the best rates. Here’s what you should know about teen auto insurance to help you throughout the process.

A Guide to Teen Auto Insurance

Should my teen have their own policy?

Many parents are wary about adding their teen to their existing auto insurance plan because their rates increase. However, purchasing a separate policy for them will often be more expensive, which is why it’s best to add them to your plan. If you’re concerned about rates, consider bundling your homeowners insurance and other plans with the same insurer.

Remember that your teen will need auto insurance for the state they’re living in. If they travel out of state for college, you’ll need to help them secure an individual plan.

Do they have the same coverage as I do?

There are liability minimums that teen drivers are required to have, which could mean making changes to your current insurance plan. You may or may not need collision and comprehensive auto insurance—check the lender that’s carrying your auto loan. An insurance agent will also be familiar with state laws about insurance minimums that teens are required to have.

Why are the rates so high?

Teen drivers are greater risks for insurance companies. They have less experience on the road and are more likely to get into or cause accidents. Rates are increased to compensate for the possibility that they’ll end up filing an insurance claim.

How can I lower them?

Lower the rates right away by investing in a car with plenty of safety features, such as automatic seatbelts and airbags. Insurance agencies may reward high academic grades with lower rates. You can use a driving monitor to track their habits, such as acceleration speed, average speed, and hard stops, to demonstrate to the insurance company that your teen is a safe driver.

If you’re exploring auto insurance for your teen, contact Fritch Insurance of Beatrice, NE, to find a plan. These professionals have served individual and commercial clients throughout Southeast Nebraska and Northeast Kansas for almost 20 years. Whether you’re interested in farm insurance, homeowners insurance, or auto insurance, they’ll present potential plans to meet your budget and needs. Call (402) 223-3312 to schedule a consultation, or visit their website to explore plans.