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.
|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 New Hampshire
New Hampshire does not require drivers to carry auto insurance, but you must be able to demonstrate you can meet NH Motor Vehicle Financial Responsibility Requirements in the event of an “at fault” collision. If you are unable to meet these requirements, then your driving privileges may be suspended unless you purchase auto insurance.
If you are required to buy insurance, the minimum limits available for liability coverage are $25,000 per person for bodily injury, $50,000 if two or more persons are hurt and $25,000 for property damage (25/50/25). Drivers that purchase auto insurance for personal use must also buy at least $1,000 of medical payments coverage and uninsured motorist coverage at limits equal to their auto liability coverage. Insurance companies in New Hampshire determine rates 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.