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.

Car Insurance Requirements in Hawaii

All cars registered to drive in Hawaii are required to have auto insurance at the minimum levels of $20,000 per person for bodily injury, $40,000 per occurrence for bodily injury, $10,000 for property damage and $10,000 for personal injury protection. Auto insurance companies rate on factors such as your driving record, how much you drive, and where you live, and what you drive.

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