Insurance

Here’s some good news about auto insurance. Your teen won’t need it until licensed and driving without you or an instructor in the car.

Saving Money on Car Insurance

Once your teen gets a learner’s license, you’ll want to talk to your auto insurance agent about costs and other issues involved in adding your teen to your policy. Because the risk of a crash is significantly higher for teen drivers, particularly during the first year of driving, your teen’s auto insurance rate likely will be higher than your own. Some families also use this time to comparison shop to find the right auto insurance option for them.

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. In this phase of the preparing-to-drive process, you may want to consider these strategies to keep your family’s costs down.

Cost-saving strategies
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 pay a larger share of the costs, but the savings might be worth it.

Encourage good grades

Many insurers offer discounts for students with a "B" or higher grade average, and some offer discounts for teens who complete driver's education or defensive driving courses.

Be involved

Introduce a parent-teen agreement to minimize risks. it won't lower your premiums, but it could prevent a crash or ticket that would increase your rates.

Plan ahead!

The type of vehicle your teen drives and how you classify your new driver - main or occasional driver of one vehicle, for example , can affect insurance premiums, so begin thinking about these decisions now.

Car Insurance Requirements in Minnesota

All Minnesota drivers are required to have liability auto insurance at these minimum levels:

  • 40,000 per person per crash for Personal Injury Protection.
  • Auto liability insurance of $30,000 for injuries to one person, $60,000 for injuries to two or more people, and $10,000 for physical damage to the other driver’s vehicle or for damage to property (30/60/10).
  • Uninsured Motorist coverage of $25,000 for injuries to one person, and $50,000 for injuries to two or more people.
  • Underinsured Motorist coverage of $25,000 for injuries to one person, and $50,000 for injuries to two or more people.

Auto insurance companies in Minnesota determine rates based on factors such as your driving record, how long you’ve been a licensed driver, how much you drive, where you live and what you drive.

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