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.
Saving Money on Car Insurance
Once your teen gets a learner’s license, you’ll want to talk to your auto insurance agent about costs and other issues involved in adding your teen 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 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.
Because the risk of a crash is significantly higher for young drivers, particularly during the first year of driving, your teen’s insurance rate likely will be higher than your own. In this phase of the preparing-to-drive process, you may want to consider these strategies to keep your family’s costs down.
|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.
Car Insurance Requirements in Ohio
It is illegal to drive in Ohio without auto insurance or proof of financial responsibility. The state financial responsibility law mandates the following coverage:
- $12,500 bodily injury or death of one person in one accident.
- $25,000 bodily injury or death of two or more individuals in one accident.
$7,500 injury to the property of others in one accident.
Learn about insurance available through AAA for teen drivers and their families.