Teen drivers (16-19) are three times more likely than drivers aged 20 and older to be in a fatal crash
People aged 15-24 account for just 14% of the U.S population but are responsible for 30% of the total costs of motor vehicle injuries among males and 28% of the total costs of motor vehicle injuries among females
Teens are nearly 10 times more likely to be in a car crash in their first year on the road
ADDING A TEEN TO YOUR AUTO POLICY
Beyond the fact that your insurer requires that all licensed family members in your household be included on your policy, your teen must be added to the policy to ensure protection is available in case of an accident. We hate to say it, but as the statistics above indicate, the likelihood of your teen getting into an accident is very real. Even a minor accident can cost you and your family thousands.
REVIEW YOUR AUTO POLICY AND LIABILITY LIMITS
The state required minimum limits simply do not provide enough coverage for many accidents. If the damage exceeds the limits of your coverage, you may be held financially responsible for the difference. If sued for an amount that exceeds your coverage, your hard earned money, your home, your retirement funds, and even future earnings may be garnished. Therefore, increasing your auto liability limits is a great idea.
CONSIDER AN UMBRELLA
As shown above, teen drivers statically pose a greater risk when driving and potentially could result in lawsuits if a serious accident has taken place. An umbrella acts as additional liability protection beyond the underlying liability limits of your home and auto policies.
Juries may award damages that exceed your underlying policy limits. In this instance, a personal umbrella would cover costs up to its limits once your underlying auto limits have expended. Umbrellas are written in increments of 1 million dollars. 85% of umbrella insurance claims are related to car accidents. However, this additional coverage offers protection against other accidents such as someone getting hurt in your home.
LOOK INTO TEEN DISCOUNTS
Many insurers offer a variety of discounts for teen drivers.
Good students discount: If your teen maintains an A/B average or 3.0 out of 4.0 GPA, most carriers offer a substantial discount for those drivers.
Driver’s education discount: Discount for taking a and obtaining a certificate from a driver’s training course.
The period during which you have teenage drivers is one of the highest risk times of your life. While the cost of insuring a teenage driver is high, the cost of having to pay an accident out of pocket is far higher and potentially catastrophic. If you haven’t completed all of the items on this checklist, we strongly suggest you reach out to us or your agent to review.
About to add a teenage driver? See how much it might cost.