There are several questions surrounding teenage drivers, when or how to get them insurance, and how your rates as a parent may be affected. So, to clarify questions about teen driving and teen insurance, we’ve compiled a list of commonly asked questions. Do you have a question that we haven’t listed? Fill out a contact form or call our office and speak directly with an agent about your concerns!
If your teen is a licensed driver, not a permit holder, then they will need to either be added to your policy or carry their own insurance. Most insurance companies will require you to provide the name of all licensed drivers in your household.
Permit drivers, or teens with a learner’s permit, are not required to carry insurance in Florida so long as they are driving under the supervision of a licensed and insured adult over the age of 21. Teens with a learner's permit are often umbrella'd under their parent or guardian's policy as a permitted driver and once they receive their official driver's license, become a named policyholder.
As soon as your teen graduates from a learner’s permit to a full-fledged driver’s license, they will need to be covered under insurance (either under your policy or a new policy of their own). Florida requires all licensed drivers to carry the minimum coverage of $10,000 Personal Injury Protection (PIP) coverage and $10,000 Property Damage Liability coverage.
It is very likely your insurance rate will increase when adding a new teenage driver. This is because teens have a higher risk of getting into an accident than older, more experienced drivers. The type of vehicle and coverage levels you select for your teen will also affect the premium. Your teen may qualify for some discounts for being a good student or for taking a driver’s education course.
If you are planning to add a teenage driver to your policy, shop around. Other insurance companies may provide a better rate (or give better discounts) than your current provider. Also, if you are adding a car along with the teen driver, you may get an additional multi-car discount.
This will depend on each carrier. Some may not provide a policy to a driver who is under the age of majority in your state and the teen driver may only have the option to be added to their parents' or guardian's policy. Other carriers may allow a 16- or 17-year-old to get their own policy but may stipulate that an adult must co-sign.
Teenagers have higher insurance rates because of their age and inexperience. There are ways, however, for your teen to save on insurance. Having good grades (usually a “B” or better) or the successful completion of an approved driver’s education course are some of the most common discounts available for teenage drivers.
Insurance rates are also calculated by the distance the car is commonly driven (e.g., the distance from home to school or work), how often the car is driven, and the type of car that is driven. If your child has to drive far from school, insurance rates may be higher. Also, sports cars, trucks, and SUVs are going to have higher insurance rates (especially for teens).
Typically, after the age of 25, insurance premiums go down until the age of 70. If there are any tickets or accidents on your driving record, the rates will remain higher until the statute of limitations runs out and the ticket or accident is cleared from your driving record.
You can keep your teen on your insurance with most carriers until they reach the age of majority in your state, which is usually 18, or longer if they live at home. Most carriers will allow you to keep a driver on your policy who is over the age of 18 and who does not live at home under certain conditions. For example, if your 18-year-old lives on or near the campus but resides at home during the summer months, then they may be able to remain on your policy. If the vehicle will be kept primarily on school campus or an off-campus housing, be sure to update your carrier with this new address.
On the upside, if your child goes to school within a certain distance from your home, they may qualify for an additional resident-student discount.
Of course, once your child goes off to college, you should re-evaluate your (and their) insurance coverage. Your child may get better or equivalent rates with their own policy or may need more or less coverage depending on where they are going to school.
Most car insurance companies offer this discount for drivers under the age of 25, who are enrolled in school full time, and who have a grade point average of a “B” (or 3.0). If your teen driver meets these qualifications, be sure to let your agent know. Proof of grade point average or enrollment may be required.
Your teen will need, at a minimum, the Florida state law requirement of $10,000 Personal Injury Protection (PIP) insurance and $10,000 Property Damage Liability coverage. It is recommended to purchase additional coverage since teens are more likely to be involved in an accident than an older, more experience driver. If your teen driver is leasing a vehicle or got a loan to purchase a vehicle, then comprehensive or collision insurance coverage may be required by the car loan servicer.
There can be serious repercussions if you do not notify your insurance company of your licensed teenage driver, especially if they were to get into an accident while they are driving. Your insurance company may deny a claim for coverage which would leave you responsible for the cost of the accident, including any personal injuries or property damage.
Also, Florida state law requires all licensed drivers to carry a minimum of $10,000 Personal Injury Protection (PIP) insurance and $10,000 Property Damage Liability coverage. You or your teen driver may get into legal trouble for not carrying the legally required minimum insurance coverage.
If you have a teenager approaching driving age, contact the independent insurance agents at Magruder Insurance for all of your teen driving questions. We are happy to provide information about insurance requirements for you and your teenager. We can also provide you with quotes from several carriers so you can compare which may be the best option for when your teen begins to drive (or learn to drive).
