Bravera Bank
Getting your child behind the wheel is exciting — but it also comes with big responsibilities. Whether they’re a new teen driver, heading to college or buying their first car, understanding auto insurance helps protect your family and manage costs. Insurance requirements, coverage options and discounts can vary by state and insurance carrier. It is important to review your policy and confirm what applies to your specific situation.
When should you add your children?
Many insurance companies require a child to be added once they are officially licensed; however, this can vary by state and carrier. It is always a good idea to notify your insurance advisor as soon as a permit has been issued.
What kind of vehicle and coverage is best?
While you want to ensure your child is driving a safe vehicle, newer models or vehicles that need comprehensive and collision coverage are likely going to rate higher. Emergency roadside coverage is an optional coverage that is usually separate from comprehensive and collision meaning you can still include this coverage for your child even if the vehicle they drive does not carry full coverage.
What about discounts to help with cost?
Discounts can vary by carrier, but good-student, driver’s ed and defensive driving courses are common discounts offered by carriers. Additionally, many carriers offer telematics or usage-based discount programs that track driving habits and reward safe driving. This discount may reduce premiums for responsible young drivers.
When should they move to their own policy?
If your child becomes financially independent, owns their own vehicle or moves out permanently, it may be time to transition them to their own policy. Your insurance advisor can help determine the best timing and approach.
Children away at college
What if they take a vehicle with them?
Each carrier is a little different, but if your child takes a vehicle with them, you’ll want to verify with your insurance advisor they are appropriately covered. Also, be sure to check if they don’t take a vehicle as there may be a special rating to lower premium cost while they are away.
Do they need renter’s insurance?
If your child is living in a dorm, your homeowners insurance may extend coverage. Keep in mind your home policy would be the one impacted if there were to be a claim.
If renting an apartment, it is always a great idea to have a renter’s policy in place. These policies are often very affordable and provide liability and property coverage.