If you’ve been the carpool mom, you long for the days when your kids can drive themselves to practice, work, and various activities. And while the idea is liberating for both you as a parent and your teen, it also comes with the responsibility and liability of having teen drivers behind the wheel.
Know Your Limits
Did you know that every time you get behind the wheel, you take all of your assets along for the ride. It’s true. If you are found responsible for a serious auto accident that results in severe injury or death, you could be responsible for damages that exceed your policy limit. Factor in a teen driver with considerably less experience than you and the probability of an accident increases significantly.
Teen drivers make up 14% of drivers on the road, but account for 30% of all accidents that result in injury. If your policy limits are $300,000 and you are sued for $1 million, you are responsible for the $700,000 difference. Retirement plans, investment portfolios, and investment properties are put at risk.
The Best Vehicle For A Teen
Regardless of the vehicle you choose for your teen, you will notice a substantial increase in your auto premium. A vehicle being financed will require full coverage which you are required to carry both liability and comprehensive/collision coverage. Full coverage will cost more than if you carried liability only on a cash purchase. Comprehensive and Collision rates once a teenager is added factor in the likelihood of an accident happening so keep this this in mind when in choosing a vehicle.
Ask If You Are Eligible For Discounts
Insurance Carriers offer discounts for teen drivers so find out from your insurer if you are eligible. Below is a list of common discounts offered:
Good Grades–If your teen has good grades you may qualify for a discount. The discount may require documentation so be prepared to send transcripts.
Driver Education Course–If your teen completed a driver education course in preparation for their license be prepared to send the certificate of completion.
Living 100 miles or more away at college without a vehicle–You may receive an additional discount.
Consider Umbrella Insurance
Once a teen driver is added to a policy, it is recommended parents add an Umbrella Policy to their insurance program. Umbrella Insurance extends the limits of liability for Bodily Injury and Property Damage. If you or your teen are involved in an accident that results in a lawsuit, an umbrella policy can make up the difference where your auto policy limits leave off. Umbrella policies are relatively inexpensive and for a few hundred dollars you can rest easy knowing your assets are being protected!
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Shari Glover is licensed insurance agent in Kennesaw, GA . Shari is passionate about helping families and businesses protect what matters the most to them. Through her agency, she is able to help families and individuals with Home, Auto, Life and Business Insurance.