Auto Insurance for Teens: How to Balance Costs and Safety

Adding a newly-licensed teen driver to your auto insurance policy is a significant step – a new driver has the potential to increase premiums exponentially.

Adding a newly-licensed teen driver to your auto insurance policy is a significant step – a new driver has the potential to increase premiums exponentially. You’re also worried about your teen’s safety and you want to know how to get the best auto insurance for teens at an affordable price, without sacrificing coverage.

Whether your teen is going to have access to your car occasionally or is getting one of their own, there’s a lot you need to know about auto insurance for teens. From minimum insurance requirements to how to choose the right policy, this blog explains how to balance costs and safety for your teen driver.

Auto Insurance for Teens: Minimum Insurance Requirements

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Every vehicle that is registered in the state of Florida must have a no-fault auto insurance. No-fault auto insurance ensures you have some medical coverage and protection from lawsuits in an accident. Regardless of whether you or your teen is driving the vehicle, you must carry at least these minimum coverage types:

  • Personal injury protection (PIP): For your own medical injuries, PIP coverage pays for 80% of “all necessary and reasonable medical expenses” regardless of who caused the accident. The minimum coverage limit is $10,000.
  • Property damage liability (PDL): In the event that you or your teen cause damage to another person’s property in an accident, PDL covers that. It does not cover damage to your property. You need to carry at least $10,000 in PDL coverage.

While these are just the minimums that the state requires, you can always purchase more coverage. If you are financing a new or used vehicle for your teen, your finance company may have higher insurance requirements. Other types of insurance coverage you can purchase for your teen are:

  • Bodily injury liability coverage
  • Collision coverage
  • Comprehensive coverage
  • Uninsured/underinsured motorist coverage

These will lead to higher premiums but will offer a substantial amount of financial protection if your teen is in a serious accident.

Auto Insurance for Teens: How to Save Money with Safe-Driving Discounts

When it comes to balancing costs and safety, safe-driving discounts are one of the best ways to purchase affordable auto insurance for teens.

1. Safety Equipment Discounts

Protecting your teen is your number one priority when you’re shopping for a car. That means you want to choose a vehicle that comes with standard safety features. You might qualify for discounts with your auto insurance company if you have these safety features on your teen’s vehicle:

  • Anti-lock brake system
  • Anti-theft system
  • Daytime running lights
  • Driver-side or front-seat airbags

Most newer vehicles come with these safety features already installed, though you can always add or upgrade an anti-theft system on every vehicle.

2. Driver’s Education Course Discounts

A commitment to education can lead to lower insurance premiums. Many insurance companies offer discounts for teen drivers that take a driver’s education course. Defensive driving courses are another way you can save money on your teen’s premiums.

If your teen has good grades, you may qualify for good student discounts. Most insurance companies have discounts for teens and college students that maintain good grades. There are also discounts if your teen goes away to college and doesn’t drive often.

3. Deductible Discounts

While your teen is still learning the rules of the road, it’s a good idea to carry full-coverage insurance. Most full-coverage policies will have deductibles for different coverage types. A new trend in insurance discounts is offering a discount off your deductible for every policy period you remain accident-free.

You can also save money on your teen’s insurance premiums by choosing a higher deductible. Higher deductibles typically reduce your policy premium, just make sure your finance company doesn’t have any restrictions on your deductible.

4. Technology Discounts

One way to save money on your teen’s insurance premiums while also encouraging good driving habits is through the use of technology. A lot of national insurance companies offer some type of in-car device that monitors your safe-driving habits.

If your teen consistently uses good driving habits, you can get significant discounts on your auto insurance premiums. You’ll also have some peace of mind knowing your teen is being monitored for safe-driving habits.

Auto Insurance for Teens: How to Choose the Right Policy

Choosing the right auto insurance for teens can be tough – you want to make sure you have plenty of coverage, but you don’t want to pay an arm and a leg. What you really want is to ensure you’re getting the best value.

Here’s what you need to know about choosing the right auto insurance policy for your teen:

  • Get multiple quotes: Every insurance company has different premiums, so get a few quotes to see where you can save the most money. Get quotes that have the same coverage limits when possible.
  • Compare coverages carefully: You want to compare coverage limits, premiums, and deductibles to make sure everything is the same. You also want to compare any additional features or services.
  • Choose a family plan: If you already have an insurance policy or are in the market for a new one, look into policies that allow you to add new drivers at lower rates. 

You also want to watch out for any potential insurance scams – get a full quote so you know exactly what the insurance company is going to cover.

Find Auto Insurance for Teens with a Local Agent

Rather than spending an enormous amount of time getting quotes from a bunch of different insurance companies, consider working with a local insurance agent or broker. Local agents know the best policies for your situation, and they know how to get the best discounts for you and your teen.

A local insurance agent will put in the work to get you as many quotes as you need to make the right decision for your family.

Need help choosing the right auto insurance policy for your teen driver? Talk with the team at Fiorella Insurance Agency today.

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