Auto Insurance 101

What is Auto Insurance?

Being Added to Your Parents Policy

Unfortunately, there is no way to avoid the price spike that accompanies adding you, a teen driver, to a policy. Because young drivers are inexperienced, teenagers have a much greater chance of being involved in an accident than do others.

For that reason, the cost to insure you, a teenage driver, is significantly higher. In reality, adding a teenager could mean a premium increase of anywhere from 50 to 100 percent. However, there are some actions you and your parents can take to offset that price increase.

Good Grades Help Save

Students with a GPA of 3.0 or higher qualify for a Good Student Discount.

Teens with their Own Cars Pay More

A teen's accessibility to a vehicle also impacts price, it may be something to consider when purchasing a car.

  • If a teen has a vehicle available for their use at all times, the premium will be much higher than if they sometimes gets to drive a parent's car.
  • When it's time for college, if you travel more than 100 miles away to school and don't take a car, your premium will decrease.

Cost-Saving Measures

Make sure you are taking advantage of all other cost-saving options available, not just those that apply to teen drivers:

  • Choose higher deductibles: You can effectively cut your insurance costs by choosing the highest deductibles you can afford.  A deductible is the amount you must pay  before your insurance kicks in. 
  • Set up EFT payments: You can avoid extra charges by selecting billing options that don't include service fees like EFT (electronic funds transfer)
  • Get a package policy: Your parents can package their home and auto insurance on a single policy, this will  provide additional discounts on your premium.

When should a new driver be added to your policy? Learn more on

Do you have a question about auto insurance? Ask and we shall answer!