Many people with teenage drivers have questions about what the best way to save money on teenage driver car insurance.
From the Star Tribune:
Question:
We have a 16-year-old who will soon get her driver’s license. Do we have to add her to our insurance? The research I’ve done shows that auto insurance coverage is for a particular car, not for a specific driver. So my insurance on my car should cover any driver, including my daughter for occasional use of my car. But my insurance company and other insurance companies I’ve contacted say I need to buy additional coverage for my daughter. But it would essentially double my annual premium. I hesitate to accept their word on the matter. Can you help?
Answer:
Car insurance is not for a particular car, said Mark Kulda with the Insurance Federation of Minnesota. Your insurance coverage follows you, and that includes into a rental car.
In an accident, a person’s own personal insurance policy takes precedence over the car owner’s policy. If you are in an accident while borrowing a neighbor’s car, your own policy is tapped first.
If there’s a claim while your uninsured daughter is driving your car, it would be on the policy of you, the car owner.
She will have to be listed as a driver on your insurance policy. If that means your premium merely doubles, that’s a good deal. Triple is more common, Kulda said. The risks are higher for new drivers because they get into many more accidents, so the rates are higher, too.
If you are wondering what your options are for your teenage driver car insurance solutions — be sure to get multiple quotes from multiple insurance carriers. You might be surprised how much different the rates can be between companies for teenage driver car insurance!