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 York
All New York drivers are required to have auto insurance at the minimum levels of $25,000 per person for bodily injury; $50,000 per collision for bodily injury; $50,000/$100,000 for death for one or two persons, respectively, in one accident; and $10,000 property damage caused by one accident. Auto insurance companies in New York 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 insurance available through AAA for teen drivers and their families.