If you’re the parent of a newly-minted teen driver in Little Falls, Minnesota, chances are you’re probably wondering if it’s cheaper for your teen to have his or her own auto insurance policy. After all, there’s a good chance that adding a teen driver to your policy could result in a sharp increase in your monthly premiums.
However, helping teen drivers obtain separate coverage might not bring any significant savings, for the following reasons:
Teen drivers usually have very little experience behind the wheel, no driving history and no credit history to speak of. These are factors that most insurance providers look for when it comes to assessing risk and, consequently, insurance premiums. That means the costs of insurance may still be steep even if your teen has their own policy.
Even if your teen has a separate auto insurance policy, there’s a good chance that you’re still footing the bill. Considering the potential expense of a teen’s own auto coverage, you may be better off keeping them on your own insurance policy.
Even with a separate policy, you’re still legally responsible for your teen in the event of an accident as long as they’re still a minor. For instance, an injured party could sue you personally if your teen’s policy isn’t enough to cover the damages of an accident.
At Hanneken Insurance, we understand how tough it can be to find affordable insurance for teen drivers. As your dedicated independent agent, we can help you find the best solutions for your auto insurance needs. Don’t hesitate to contact us if you have any questions or concerns about coverage for your teen, spouse or other family members.