If your teenager just passed their final driving test, they’re probably gearing up to look for their first car — and it’s more than likely that you’ll be enlisted to help them find insurance. Whether they’ve already found the perfect vehicle or they’re still in the test-drive stage, a licensed insurance broker can help you and your teen shop around for the right car insurance to suit their needs. A broker can even compare insurance costs for the vehicles your teen is considering, which could help make their decision a little easier. We’ve got answers to some of the questions that might come to mind as you look to insure your teen’s first set of wheels.

Are there car insurance discounts for teenage drivers?

It’s no secret that teens generally pay higher car insurance premiums than older drivers, simply because they have less experience behind the wheel. They may also be more surrounded by distractions (like their friends dancing in the back seat or the buzzing cell phone in their pocket, for example). The good news is that your teen may qualify for a discount that could help them get a more reasonable rate. For example, some insurance companies will offer discounts if a new driver has completed a certified driver’s training course, and others will offer discounts for students who get good grades in school. Be sure to ask your insurance broker to find out which insurers offer discounts that your teen might qualify for.

Who should be listed as the primary driver on your teen’s car insurance policy?

In a car insurance policy, the “primary driver” or “principal driver” is the person who drives the vehicle most often, regardless of who actually owns it. Other drivers living in the same household will need to be listed in the policy, too — but the person who drives a specific vehicle most often should be listed as the primary driver for that vehicle.

Some parents might be tempted to list themselves as the primary driver of their teen’s car to keep their premium down, but you should know that this is considered insurance fraud — and it could result in a cancelled policy or a denied claim. To make sure your teen has the coverage they need in the event of a collision, consider this simple breakdown of what you should do in a couple of common scenarios:

  1. You bought a car for your teen to drive, but the ownership is in your name. If the vehicle ownership is in your name, you will also need to buy the insurance policy to go with it. But since your teen is the one driving the car on a day to day basis, they need to be listed as the primary driver.
  2. Your teen bought their own car and the ownership is in their name. If the vehicle ownership is in your teen’s name, they’ll need to buy the insurance policy to go with it. Your teen will also need to be listed as the primary driver since they’re the one who will be driving the car most often.

If you have questions about your teen’s car insurance coverage and who should be listed as the primary driver, reach out to your licensed broker.

If you bought a car for your teen and the ownership is in your name, the insurance policy will need to be in your name, too — but your teen should still be listed as the primary driver.

How much third-party liability coverage does a teen driver need?

Since teen drivers have less experience on the road, it’s especially important that they get enough coverage to protect them in the event that they’re found at fault for an accident. The minimum third-party liability limit that comes with a car insurance policy may not be enough to cover a lawsuit in the event of an at-fault collision. Ask your broker if your teen is eligible to increase their liability limit.

Since teen drivers have less experience on the road, it’s especially important that they get enough coverage to protect them in the event that they’re found at fault for a collision.

Where should you buy insurance for a teenage driver?

When you’re shopping for insurance for your newly licensed driver, your first stop should be a licensed insurance broker. Brokers partner with multiple companies and have access to a wide variety of coverage options and prices — so they can do the shopping around for you and help you find the best insurance for your teen. They can also answer any questions you might have about coverage options or limits. If you don’t already have your own broker, find one near you today.

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