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.

Once your teen gets a learner’s permit, you’ll want to talk to your auto insurance agent about adding your new driver 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 car insurance rate likely will be higher than your own. Some families also use this time to comparison shop to find the right car insurance option for them.

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.

Auto Insurance Requirements in Arizona

All Arizona drivers are required to have auto 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.