Insurance

Arizona teens driving on their graduated instruction permits with a licensed adult supervising them do not need to have their own insurance policies. Once they start driving on their own, however, teens need insurance, so you will want to explore options to keep these costs reasonable.

Most families do this by adding the teen to their existing auto insurance policy. You could also use this as a time to comparison shop to find the best insurance option for the whole family and your vehicles.

Saving Money on Insurance

Because the risk of a crash is significantly higher for young drivers, particularly during the first year of driving, your teen’s insurance rate likely will be higher than your own. Here are a few strategies to help you reduce insurance costs both now and once you add your teen driver.

• Raise deductibles to lower premiums. Ask your insurance representative how much you could save by increasing your deductible. If you file a claim after raising your deductible, you’ll pay a larger share of the costs.
• Investigate discounts. Many insurers offer discounts for students with a “B” or higher grade average and for teens who complete driver education or defensive driving courses.
• Share vehicles. How you classify your new driver—as the main or an occasional driver of one vehicle, for example, will affect insurance premiums, so consider sharing vehicles.
• Just say “no” to sports cars and SUVs. The kind of car your teen drives can impact safety. Many experts agree that mid-sized sedans are the best choice for teens. Small cars don’t offer as much protection in crashes, sporty cars may encourage speeding or recklessness, and SUVs and pick-up trucks are more difficult to maneuver and more likely to have roll-over crashes.

• Practice, practice, practice. Now is the time to drive a lot with your teen under varied conditions so there will be fewer surprises (and potential crashes) when you’re no longer in the passenger seat.
• Be involved. Research shows that teens with more involved parents get fewer tickets and engage in less risky driving. Avoiding tickets and crashes will help keep your insurance rates down. A parent-teen driving agreement can help you set rules and stay involved.

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.

Learn about insurance available through AAA for teen drivers and their families.