Handing over the car keys to a newly licensed teenager is a major milestone for any parent. It brings a mix of pride, anxiety, and inevitably, a significant increase in your auto insurance premiums. Because teen drivers lack experience, statistically, they are at a much higher risk for accidents. However, parents in Mississippi can take proactive steps to manage these costs while ensuring their teen is adequately protected.
Add Them to Your Policy
Generally, it is much cheaper to add a young driver to an existing parent’s auto insurance policy than it is for the teen to purchase a separate policy on their own. By keeping them on your policy, you can take advantage of multi-car discounts and your established history with the insurance carrier.
Encourage Good Grades
Many insurance companies offer a Good Student Discount for young drivers who maintain a B average (3.0 GPA) or higher. Insurers have found a correlation between academic responsibility and safer driving habits. Be prepared to submit your teen’s report card or transcript to your agent to qualify for this valuable discount.
Choose the Right Vehicle
If you are purchasing a car for your teen, the type of vehicle makes a massive difference in insurance costs. High-performance sports cars and expensive luxury vehicles will cause premiums to skyrocket. Instead, look for reliable, moderately priced sedans or small SUVs with high safety ratings. Features like anti-lock brakes, electronic stability control, and advanced airbag systems not only keep your teen safer but can also lower insurance rates.
Consider Driver Education Courses
Enrolling your teen in a formal driver’s education or defensive driving course can pay off. Many carriers offer discounts for young drivers who have successfully completed an approved safety course. It provides them with essential defensive driving skills and demonstrates to the insurer that they are taking safety seriously.
Review Your Liability Limits
When you have a teen driver in the household, your liability risk increases. While Mississippi requires minimum liability limits of 25/50/25, this is rarely enough if your teen is involved in a serious at-fault accident. It is highly recommended to increase your bodily injury and property damage liability limits. You might also want to discuss adding a personal umbrella policy with your agent to provide an extra layer of liability protection over your auto and home policies.
Partner with an Independent Agent
Because every insurance company calculates teen driver risk differently, rates can vary widely. As an independent agency, Runnels Insurance can shop your policy across multiple carriers to find the best combination of coverage and price for your growing family.
Before your teen takes their driving test, call Runnels Insurance in Flora, MS, to discuss your options and prepare for the road ahead.