6 Common misconceptions about young drivers:
Time flies and before you know it your baby is driving. If you’re a family with young drivers, who need auto insurance, look out for these common misconceptions.
1. I don’t have to add my child to my policy until they have their license.
Some companies require you to add your child when they only have a learners permit.
2. I don’t have to add my child to my policy until they have an accident.
This is not true.Most insurance companies will not fulfill any claims filed involving kindred drivers that were not already on the policy.
3. Our Insurance rates will go down when they turn 25.
This is a myth.Insurance rates will not dramatically drop once a child turns 25.However they will gradually decrease year after year if everything else remains the same (no accidents, new cars, etc.)
4. Defensive driving classes will reduce my rates.
If your child takes a defensive driving class after getting a ticket it will not reduce your rates.Taking a driver’s ed class however will qualify most teens for a discount up to 3 years after taking the course.
5. Just being a student will reduce my insurance rates.
Companies that do offer student discounts are based on merit, so students must maintain good grades; usually called a Good Student Discount.This discount is typically only applicable until the age of 25 (unfortunate for older students).
6. Non-driving children don’t have to be listed on my insurance policy at all.
False.If your licensed or unlicensed child doesn’t drive, they still need to be listed on your auto policy.In this case they need to be excluded: meaning that if they were to drive your car for some reason they have no coverage of any kind, including no liability, no uninsured, no accidental, etc. (hide your keys!)
Car insurance for teenage drivers can be expensive, so any way that you can save money on your auto insurance policy is a win. If your child does get into an accident, it can be a traumatizing experience especially for new drivers; we recommend this article for knowing what to do after you get into an accident.
Please talk to your agent for more details about the best way to handle young drivers on your families’ auto insurance policy.
AZ Insurance Team