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Summer vacation means fun and relaxation, but for many families, it also means new teen drivers driving to summer jobs or college. Whether your teen just got their learner’s permit or you’re adding a young driver to your existing auto policy, this milestone comes with excitement, a few nerves, and important insurance considerations.
Here’s what every parent should know about car insurance for teen drivers.
1. Why Teen Drivers Increase Insurance Rates
Teen drivers are statistically more likely to be involved in accidents due to their inexperience. Because of this, insurance companies consider them high-risk drivers. Adding a teen to your policy can significantly increase your premium, however, there are ways to manage those costs.
It is important to note that North Carolina has passed a new law that impacts vehicle insurance. For drivers obtaining their NC driver’s license for the first time on and after July 1, 2025, the inexperience period will increase from three to eight years, which could impact your insurance premiums.
2. Tips for Saving on Teen Driver Insurance
1. Ask About Good Student Discounts. Most insurers offer discounts for students who maintain a “B” average or higher. This can save you hundreds of dollars a year.
2. Enroll Them in a Defensive Driving Course. Certified driving courses not only help your teen become a safer driver but can also qualify you for additional discounts.
3. Choose the Right Vehicle. Avoid flashy cars or sports models. Instead, look for safe, modest vehicles with high safety ratings and low repair costs.
4. Increase Your Deductible. Raising your deductible can lower your premium. Just be sure it’s an amount you can afford if an accident happens.
3. Should You Put Your Teen on Your Policy or Get Them Their Own?
In most cases, it’s cheaper to add your teen to your family policy rather than have them get their own. However, every situation is different. We can help you run the numbers and find the best option for your budget and coverage needs.
4. Liability Coverage Is Key
Teen drivers are still learning the rules of the road, which increases the risk of at-fault accidents. That’s why it’s critical to make sure your liability coverage is high enough to protect your family financially.
Legislation was also passed in North Carolina to increase minimum limits. For all new and renewal liability policies effective on and after July 1, 2025, the minimum Bodily Injury limits shall increase from $30,000 per person and $60,000 per accident to $50,000 per person and $100,000 per accident. Property Damage Liability minimum limits shall change from $25,000 per accident to $50,000 per accident.
5. Having the Right Insurance Agent
As an independent insurance agency, covering North and South Carolina, we work with multiple insurance carriers to find the right coverage for your needs.
If you’re adding a teen driver to your policy, let’s talk! We’ll help you understand the new legislation changes and the options available to make sure your family is protected.
Latorre Insurance is a licensed independent insurance brokerage serving North and South Carolina, with offices in Charlotte, Greensboro, and Raleigh.
