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Car Insurance Guide for Parents Insuring New Drivers

new driver teen with his dad on car

People need cars for daily functioning, so it’s no wonder your teenager can’t wait to get a license and start driving. But having a young driver behind the wheel brings some concerns to parents, including updating their car insurance policies.

New drivers are more likely to get in trouble since they lack driving experience. Insurers know that, so they typically charge more for these policies. 

We encourage you to get in touch with us at Lake Region Agency to explore your teen’s coverage options, but for now, take a look below to discover the things you need to know as parents insuring new drivers.


Tips for Parents Insuring New Drivers

Adding teenage drivers to your auto policy isn’t much of a hassle since the procedure is simple:

  • Find an insurance provider: You can go with your current car insurance company, but you’re also free to explore other companies to find favorable auto insurance quotes.
  • Check auto insurance rates and coverage options: Naming a new driver in your coverage policy has its price, so ask a chosen insurer about car insurance costs when you plan to add a teenage driver. Make sure they offer good liability coverage and don’t hesitate to ask for discounts.
  • Gather necessary information: Once you find a suitable insurance offer, provide your teen’s personal information.
  • Get your own car insurance policy updated: Car insurance companies update your policy and process your application. If you’re eligible for discounts, insurers include them in your auto insurance premium quote. 
  • Wait for approval: The insurer checks your application, and once they approve it, you and your teen are covered behind the wheel. 


Factors Affecting Car Insurance Cost

Green piggy bank money box inside car, vehicle purchase, insurance or driving and motoring cost

The average annual car insurance cost in Minnesota is around $1,000. When you add a new driver to your car insurance policy, premiums tend to rise. For example, when adding teen drivers to your auto insurance, expect to pay a 150% higher annual premium. 

This cost isn’t set in stone, as many factors affect the final price for adding another licensed driver to your policy. 

Driver’s Age and Gender

Younger drivers have higher chances of causing or participating in car accidents, so you’ll pay higher premiums than if you add experienced drivers who are 30 or older.

The gender of new drivers can also increase car insurance rates. Statistics show that men are more likely to cause car crashes, so auto insurers charge higher premiums when you add a male driver to your car insurance, even if they have a clean driving record.

Car Model

Many car insurance companies consider the vehicle’s age when updating your insurance policy. Newer cars carry higher insurance rates than older vehicles, and the safety features of your vehicle can affect your insurance rate.

Coverage Type

The premium cost can vary depending on the car insurance type. You can choose between comprehensive, collision, or liability insurance. The latter is mandatory in most states, while the first two policies are optional. 

Collision policy has your back in case you or your teen driver gets involved in a car crash. Comprehensive insurance provides coverage for everything else that causes damage to your vehicle, for example, when thieves damage your car while stealing your catalytic converter

Credit Score

Your insurance company can factor in your credit score when calculating your premiums. Policyholders with higher credit scores typically pay lower rates. To insurers, a good credit score is a sign of financial stability, meaning these policyholders are less likely to file a claim.


Tips on Reducing Insurance Premiums

Parents Insuring New Drivers - Beautiful young woman choosing a new auto at the dealership

Consider exploring teen monitoring or teen driving discounts, which can significantly reduce insurance costs for young drivers. Some insurance companies offer discounts to teens who use a specific app on their phone or have onboard system features in their car that monitor their driving behavior. 

These apps and systems track factors like speed, braking habits, and adherence to traffic rules. By demonstrating responsible driving, your teen may qualify for substantial discounts on their insurance premiums.

In addition to this, here are some other tips to help reduce insurance costs for teen drivers:

  • Shop around: Don’t settle with your current insurer if their rates aren’t favorable. Instead, compare rates from several companies to find the one that suits you best.
  • Boost your credit score: You might get cheaper car insurance if you improve your credit history, as better finances qualify you for lower rates.
  • Look for a good student discount: If young drivers go to high school or college and have high GPAs, your insurer can lower your insurance rate by 5 to 25%.
  • Multi-car discount: When teens have their vehicles and want to add them to their parent’s car insurance, this might bring lower rates.
  • Give the cheapest car to your teen: A good way to get cheap car insurance is to assign an older and cheaper vehicle to your teenage driver. 


Frequently Asked Questions

When to Add a Teen Driver to My Car Insurance?

You don’t have to wait until your teen gets a driver’s license. If they’re still student drivers, add them to your insurance to get proper insurance coverage, as accidents can happen while they’re still learning to drive.

When to Remove a New Driver from My Policy?

You can keep your teen on your car insurance policy as long as their permanent address is the same as yours. Unlike health insurance, new driver’s car insurance doesn’t have a cutoff age.


To Sum Up

Proper insurance can give you peace of mind while your teenagers are on the road. As new drivers lack driving experience, they might have trouble in traffic. 

New driver car insurance offers you peace of mind, so contact us today to find your best coverage options!

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