New Teen Driver Plan
A new driver is coming. Here's the plan for your insurance.
Parents start worrying about the auto bill months before the license date. Here is what to do before the permit, before the test, and in the first year, so the cost is a plan and not a surprise.
The guide
1Before the permit
- Call your agent first. Ask how your insurance company handles a driver with a learner's permit. Many cover a permit driver under your policy without a charge, and some want them listed. Know before the first lesson.
- Look at your liability limits. A new driver in the house raises the chance of a serious claim. This is the time to raise your auto liability and look at an umbrella, which sits on top and protects your home and savings.
- Pick the car before the license. The car a teen drives moves the price as much as the teen does. A midsize sedan or small SUV with good safety ratings usually costs less to insure than a sports car or a big pickup.
2Before the license test
- Ask about every discount. Good student (often a B average or better), a driver training course, a safe driving app, multiple cars on one policy, and a distant student discount if they go to school far from home without a car.
- Ask how drivers are matched to cars. Some insurance companies rate a teen on the car they drive most. If that's the oldest car in the driveway, say so.
- Decide on collision for an older car. If the teen drives an older car you own outright, collision coverage can cost more over a few years than the car is worth. Run the numbers before you add it.
- Get the quote before the test date. Then you know the cost before the day they pass, not after.
3The first year
- Add them the day they're licensed. A licensed driver who lives with you and isn't listed on the policy can cause a problem at claim time.
- Know Arizona's graduated license rules. For the first six months, Arizona limits late night driving and young passengers. Check the current rules with the Arizona MVD and make them house rules.
- Put the house rules in writing. Phones away, passengers, and curfew. A one page driving agreement you both sign helps.
- Ask for a new price every year. Good grades, a clean record, and a year of experience can bring the premium down. Ask at every renewal.
Keep a copy
Get it as a PDF.
Print it, put it on the fridge, and take it to the call with your insurance company.
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