Donald C. Reutemann CFP®, RPA

(518) 688-2223

Insurance Read Time: 2 min

Buying Auto Insurance For Teen Drivers

Driving may be a rite of passage for teenagers, but for parents, having a teenage driver can be stressful and expensive. Your child will need auto insurance coverage as soon as they receive their driver’s license. Here are some important considerations.

Determine Whether to Add Your Child to Your Policy or Purchase a Separate Policy

  • Check with your insurer to see how your premiums may be affected. Expect that they could rise dramatically; however, savings may be found through multi-vehicle and good student discounts.
  • If your child is driving an “old beater” that doesn’t require comprehensive or collision coverage, a separate policy, in limited instances, may save you money.
  • Discuss your options with your insurance agent.

Consider Your Teen Driver’s Coverage Choices

  • Most personal auto policies won’t cover a driver transporting goods or services in exchange for a wage. So, if your teen is planning on becoming a pizza delivery driver, for example, contact your insurance agent to determine if additional coverage is needed.

Find Ways to Save Money

  • Consider vehicles with high safety ratings over sportier, more-expensive cars.
  • Think about raising your policy’s deductibles.
  • Reassess your need for collision or comprehensive coverage.
  • Ask about “occasional” or “pleasure only” discounts, which may apply to children away at school.
  • Explore usage-based insurance, which involves installing a device in the vehicle that monitors driving behavior and rewards good driving. It’s also a way to keep tabs on your teen’s driving.
  • Have your teen complete a driver’s education course.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

Is a SEP-IRA Right for Your Business?

Is a SEP-IRA Right for Your Business?

For some, the idea of establishing a retirement strategy evokes worries about complicated reporting and administration.

Here’s the Retirement Crystal Ball You’ve Been Waiting For

Here’s the Retirement Crystal Ball You’ve Been Waiting For

Making retirement calculations isn’t about perfection; it’s about helping you prepare confidently.

What is the Value of Your Business?

What is the Value of Your Business?

Ascertaining the value of your business is important for a variety of reasons.

 

Have A Question About This Topic?







Thank you! Oops!

Starting a Roth IRA for a Teen

This early financial decision could prove helpful over time.

The Business Cycle

Understanding the economy's cycles can help put current business conditions in better perspective.

Not Just Equal Pay, Equal Job Security

While this may feel like a golden age for the LGBTQ community—with the affirmation of marriage equality and a cultural shift embracing diversity—these successes may distract...

View all articles

What Is My Life Expectancy?

Estimate how many years you may need retirement assets or how long to provide income to a surviving spouse or children.

Assess Your Life Insurance Needs

This calculator estimates how much life insurance you would need to meet your family's needs if you were to die prematurely.

My Retirement Savings

Estimate how long your retirement savings may last using various monthly cash flow rates.

View all calculators

Protecting Those Who Matter Most

The importance of life insurance, how it works, and how much coverage you need.

Your Cash Flow Statement

A presentation about managing money: using it, saving it, and even getting credit.

5 Smart Investing Strategies

There are some smart strategies that may help you pursue your investment objectives

View all presentations

Behavioral Finance

An amusing and whimsical look at behavioral finance best practices for investors.

Jane Bond: Infiltrating the Market

Agent Jane Bond is on the case, cracking the code on bonds.

The Junk Drawer Approach to Investing

It's easy to let investments accumulate like old receipts in a junk drawer.

View all videos