Here’s some good news about insurance. Most insurance companies don’t require coverage for teen drivers until they’re licensed and driving without you or an instructor in the car. Before your teen gets an instruction permit, you’ll want to talk to your insurance agent about costs and other issues involved in adding your teen to your policy. 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. In this phase of the preparing-to-drive process, you may want to consider these strategies to keep your family’s costs down:
Insurance Requirements in Wisconsin
All Wisconsin drivers are required to have liability insurance at these minimum levels:
- $25,000 for injuries to one person, $50,000 for injuries to two or more people and $10,000 for Property Damage (25/50/10)
- Uninsured Motorists coverage of $25,000 for injuries to one person and $50,000 for injuries to two or more persons
Insurance companies in Wisconsin 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.