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She’s got the keys, but Get Wise before you insure her

You better have this conversation with your agent before you insure your teen driver.

In the spirit of graduation season and the upcoming summer, my good friends and sources at the Tennessee Department of Commerce & Insurance (TDCI) suggested parents and guardians should have these conversations with their insurance agents before insuring their teenage drivers:

  • Discuss whether it’s best to add your teen driver to your current policy under one of its existing vehicles or whether it’s more cost-effective to buy a vehicle for your teenager. “If you don’t want to purchase a car specifically for your teenager, be aware that adding another driver to your (existing) policy can be costly,” said TDCI Communications Director Kevin Walters.
  • Consider revising coverage or deductibles. Be sure to review your current deductibles to determine whether you can afford to absorb a larger portion of your loss in the event of an accident. Consider lowering or eliminating physical damage coverages on older vehicles — unless a lienholder, such as a bank, requires that coverage.
  • Regularly review your policy and update accordingly. Understand that when your teenage driver reaches 18, graduates from high school or earns her GED, those are rites of passage that may impact your premium.
  • In the event of an accident involving your teen driver, make sure the family is all on board about the steps to take to ensure your teen’s safety and to guarantee a smooth claim process. The National Association of Insurance Commissioners (NAIC) offers a free WreckCheck app to help walk you and your teen through what to do and what not to do after an accident.

“Giving a teen driver the reigns as he or she heads off to work or college can be an anxiety-evoking event for parents,” said TDCI Commissioner Julie Mix McPeak. “We hope these tips on car insurance…will keep teen drivers safe and help lower parents’ insurance costs.”

Copyright 2018 Wise Choices TM. All rights reserved.

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