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Teen Drivers and Car Insurance – What you need to know

“Sara just got her license.  She’s beyond ready to get behind the wheel of your car, but all you can think about is…. What is this going to do to my car insurance?”

This is THE QUESTION for every parent with an upcoming driver.  It’s hard to imagine a moment ago they were toddling after bugs; now they’re talking about cars and freedom…what do you do?  Remember, it’s a given, this is going to cost something, but let’s make sure we discuss why it’s important to have insurance, too, especially for a teenager:

Did anyone ever talk about car insurance with you when you got your keys? Me neither.  I remember the lecture “you wreck the car, I’ll wreck you!” but no one explained why this was such a big deal.  Yes, the car is costly, but wow can insurance be expensive too when adding a young driver!  I see increases anywhere between $100 to $200 AND MORE per month just for adding your kiddo to your policy!  This isn’t something that you just “get and go” – this is big stuff.

First things first, let’s talk policy:

  • The Given: Car insurance protects your car …if you want it to. This is usually what people think of when you tell them “I’ve got insurance.”
  • The Important One: Car insurance protects YOU: Your teenager is probably oozing confidence (or not), so they need to know car insurance is what can pay the medical bills when you’re in an accident in Michigan. It’s also what pays if someone sues you due to an auto accident – Did someone say “Bernstein”?  It’s what protects you and your future!  We live in an era where people sue their neighbor over anything and auto insurance could very well be the only thing between your future assets and that other party’s lawyer.

Now, let’s talk consequences: 

Did you know a single ticket 5 over the speed limit can easily cost you $25 to $50 and more per month??  Let’s say Sara gets caught hot rodding in that back lane.  Now she has a ticket…and now the cost to insure Sara went from $100 a month to $150! …If you’re lucky.   Let them know, this ‘little ticket’ won’t disappear for at least three years. (That’s Junior and Senior year of high school and how about freshman year in college??)  Add on a couple more small tickets and you’re looking at your insurance canceling!   What’s that mean? EVEN HIGHER RATES!  Plus, no insurance means no driving for AT LEAST THREE YEARS!

We all received threats, but no one talks with the kids about insurance costs and consequences.  Let’s change this.

Informing your kids will help them make wiser decisions on the road and keep a few more pennies in your pockets.

If you’re not comfortable having this discussion, it’s a great idea to bring your young driver in to speak with one of our trusted advisors at the Rummel Agency – that’s what we’re here for and we’re happy to help!

Happy Driving!