Is your teen turning 16 this year? If so, adding them to your car insurance policy is a necessity before handing over the keys. Though this may seem like an expensive endeavor, it doesn’t have to be. Teaching your teen the importance of safe driving habits and purchasing a comprehensive policy will ultimately save money. Cundiff & Company Insurance has provided the Somerset, KY, area with quality auto coverage for 40 years, and they outline the most important things to know about adding your child to your policy.  

You Should Review Coverage With a Qualified Insurance Agent

Regardless of the car your teen will be driving, review the coverage on your policy. Most agents will strongly suggest increasing your liability coverage, which covers both injuries and damage to the other car if your child is at fault for an accident. This safeguards your assets against potential lawsuits if your existing policy does not cover the damages sufficiently. If your teen is driving a car with a value of less than $5,000, it is suggested to reduce your comprehensive and collision coverage. This will mean a higher deductible in the event of an accident but lower monthly payments. If the car is worth more than $5,000, increase coverage so you can replace the damaged vehicle, if necessary.

When You Should Add Your Teen Driver to Your Auto Policy

The best time to add your teen driver to your policy depends on your state’s laws, as well as your insurance company’s rules. Many providers allow you to add teens to a car insurance policy at no cost when they have their driver’s permit. However, the teen must have a licensed passenger 21 or older to supervise them when they are driving. Always notify your insurance company when your teen becomes fully licensed. Failing to do so can result in your company denying all coverage or requiring you to pay any damages should an accident occur.

High Grades Mean Better Rates

If your teen driver maintains a B average or higher in school, many auto insurance companies will offer a good student discount. A transcript or report card is usually sufficient evidence of their achievements. This means lower monthly payments for you while establishing a quality driving record for them. 

If you have questions about adding a teen driver to your car insurance policy, the agents at Cundiff & Company Insurance are on hand to assist you. With comprehensive coverage and competitive rates, they’ll ensure your child is protected behind the wheel without significantly increasing your monthly premiums. Call them today at (606) 679-8379 or visit their website for more information.