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 permit, 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 Utah
All Utah drivers are required to carry bodily injury and property damage liability insurance to help pay for damages they cause in an auto accident. The minimum amounts drivers are required to carry are: $25,000 per person and $65,000 for two or more persons for bodily injury liability and $15,000 for property damage liability. Typically this is shown on your policy as 25/65/15. Utah’s no-fault law also requires you buy a minimum of $3,000 in Personal Injury Protection (PIP) coverage. PIP is a broad term for the coverage that will pay for your medical expenses in case of a crash.
Learn about insurance available through AAA for teen drivers and their families.