When it comes to teen driver insurance North Carolina is like most states: insurance is an absolute requirement. In fact, regardless of where you live you must really think about obtaining the right car insurance for your teenage son or daughter. This is the age group that has been involved in most car accidents, and you don’t want to risk making your family responsible for any liability damages that may arise if your teenage driver gets involved in a car crash.
The question now is what kind of car insurance is right for your teen? Two factors must be prioritized—the extent of the coverage (you need lots of liability insurance!) and the cost of the premiums (lower is better).
Adding the Teen to Your Auto Insurance Policy
In most cases adding your teen to your own auto insurance policy is the prudent and more affordable option. You should talk to your auto insurance company about this even before your teen obtains their permit, because you need to know when you must include your child in your policy. Some insurance carriers require it during the permit state, while others only require it once the license is acquired.
The discussion with the auto insurance carrier should include any discounts that may be available. The discounts may be granted if your teen gets good grades or enroll in Driver’s Education or in a special course recommended by the carrier. Some carriers may offer discounts if you sign up for a pay-as-you-drive (PAYD) telematics program that records the mileage and driving behavior of your teen.
Make sure that you get liability limits that are way beyond the state minimum for your teen. Teenagers are more likely to get into an accident, and thus you really increase the risk of paying huge liability damages not covered by your insurance.
The Right Car for Your Teen
If you are buying a new car for your teenage driver, you should pick a safe and non-flashy car that insurance companies invariably love to insure. In fact, you may want to ask your insurance companies for a list of cars that require lower premiums for teens. A safe and boring car will be cheaper to insure than an expense and fast car.
Of course, you may just list your teen as the secondary driver for the family car. If you have more than one car, you may assign your teen driver to just the cheapest car on the policy. You have to tell your insurance company about this, or else they may assign the most expensive car to your teen. Of course, this also means that your teen will be driving uninsured if they drive any other car except for the one you assign to them.
You should also make sure that your teen doesn’t drive the classic or expensive car that your family owns, even if you allow them to drive your other cars. Ask your insurer about excluding your teen from just this single vehicle.
Excluding Your Teen from Your Policy
It’s always a good option to exclude your teen from your expensive cars, but in some cases it may actually be a good idea to just drop them from your policy and get them on a separate policy.
This is a sensible option if your teen just can’t avoid getting tickets or into accidents on a regular basis. If this happens, your insurer will be very unhappy and they may decide to drop you if your teen remains on your policy.
You should then shop for a new auto insurer for your teen, and the good news is that each insurer has different views regarding accidents, violations, claims history, age, and riving experience. Again, you need to shop around and try to get the best liability coverage you can find for the lowest premium costs.