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 car 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 auto insurance option for them.
|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.
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.
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 Iowa
All Iowa drivers are required to have liability auto insurance at the minimum levels of $20,000 per person for Bodily Injury, $40,000 per crash for Bodily Injury and $15,000 for Property Damage (20/40/15). Auto insurance companies in Iowa 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 car insurance available through AAA for teen drivers and their families.