When the time comes to hand over a pair of car keys to your teenager, the most important thing is that they are properly insured with an auto insurance policy from an agency like High Favor Insurance. As a parent in Birmingham, MI, you probably have a lot of questions about insuring your new, young driver. Here are a few things you should be familiar with.
Does Your Teen Need Their Own Separate Policy?
It is not uncommon for parents to be concerned about adding their teen driver to their current auto insurance policy due to a potential increase in rates. However, more often than not, a separate policy for your teen will be more expensive. This is particularly true if you currently bundle your home and auto insurance and have multiple vehicles on your policy.
However, the answer to this question will vary from one family to the next. Speaking to an insurance agent can clear up what step would be the most cost-efficient and offer the most protection. Ideally, the most important thing is that your teen is insured before getting behind the wheel.
Does Your Teen Require the Same Coverage as Parents?
Like every driver, teen drivers must have state-minimum liability coverage. Depending on your state, this may or may not differ from your own as an adult. Further, if your teen is driving a financed vehicle, then the lender is likely to require full coverage insurance (collision and comprehensive). Our team is happy to help you identify the coverage your teen needs.
Will the Kind of Car Teens Drive Impact Rates?
Yes, but this is true for any driver, regardless of their age. It goes without saying that a luxury or sports car will likely cost more to insure than a family car with enhanced safety features and ratings.
If you’re ready to get a teen auto insurance policy in Birmingham, MI, contact us at High Favor Insurance.