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 an instructional permit, you’ll want to talk to your auto insurance agent about costs and other issues involved in adding your teen to your policy. Most families add teens 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.

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.

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 Illinois

All Illinois 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 Illinois 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 more about Illinois insurance requirements from the Illinois Secretary of State Office.

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