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Insuring Teen Drivers

Congratulations!? The days of carpools are now transitioning to the next phase of Insuring Teen Drivers.  While it is exciting for your teenager, adding a newly licensed driver to your policy can be expensive and comes with added risks to consider.

Let’s start with the basics.  In the state of Ohio, a learners permit can be issued at 15 1/2 years old.  At this point, you should contact your agent and provide the permitted driver’s name, date of birth and license number (this number remains the same once they pass their test).  They are not yet considered a rated driver, and the premium will remain unchanged.  Details for licensing process in Ohio can be found here.

Once they turn 16, they are eligible to take the road test and become fully licensed. At this point, you contact your agent again and the newly licensed driver is now rated on the policy.  One of the most frequent questions that we hear is how much does it cost?  The answer is usually, it depends.  Adding a 16 year old driver to the policy tends to increase the premium by at least $1,000/year.  Insurance is based on a variety of factors though so it will vary.  If an another car is being added to the policy, then the new driver will be listed as a principal driver which often carries a higher premium than a more experienced driver.  Again, prices will vary based on a range of factors.

As with any insurance coverage, the objective is to manage risk and costs.  An inexperienced driver tends to be a higher risk.  Therefore, it makes sense to maintain or even increase the liability limits on the policy.

3 ways to lower premiums:

Good grade discounts – sending in a report card which shows at least a B average is a good starting point.

Telematics discount – carriers have been repricing policies based on specific driving habits which they track through smart phone apps.

Be a safe driver – mistakes happen but the best pricing is made available for those who have a clean driving record.