Insurance & Vehicle Considerations
When your teen is ready to hit the road alone, take some time to be sure your insurance policy is ready, too. Most families do this by adding their teen to the family policy, but you might improve savings, coverage or service by comparison shopping for the whole family and your vehicles (and house, boat, motorcycle and anything else you insure).
Three Things to Consider at This Stage
Finances: Can you and your teen afford the cost of insurance, gas and maintenance? Who will pay for the vehicle? Have you taken time to find a safe car that fits your family budget?
Readiness: Has your teen demonstrated safe, responsible driving behavior and driven alone for at least six months without a crash or ticket? Make sure you have a parent-teen driving agreement in place and your teen has been driving successfully without you before handing over the keys.
- Involvement: Is your teen ready to own, operate and maintain a vehicle? Involving your teen in the purchase process can be a great learning experience regarding the costs and responsibilities of vehicle ownership.
Insurance Requirements in Arizona
All Arizona drivers are required to have insurance at the minimum levels of $15,000 per person for bodily injury, $30,000 per accident for bodily injury and $10,000 for property damage (15/30/10). While these minimum levels comply with statute, AAA believes they are insufficient for real-world driving. AAA's agents can give you advice on available coverage limits (up to $1 million per person, per accident and property damage through AAA) and craft a policy that meets your needs, as long as it complies with state statute. The majority of members with AAA insurance carry at least $100,000 per person and $300,000 per accident, or higher.
Saving Money on Insurance
Because the risk of a crash is significantly higher for young drivers, particularly during the first year of driving, it shouldn’t surprise you if your teen’s insurance rate is higher than your own. Here are a few strategies to help reduce teen driver insurance costs.
Learn more about insurance available through AAA for teen drivers and their families.