Adding a Teen Driver to Your Auto Insurance Policy

If your teen is driving, they need auto insurance. You don’t have to add your child to your car insurance policy, but it may be more cost-effective than the teen getting their own policy. Contact Variety Insurance in Springdale, Arizona, to learn more about teen auto insurance options.

Do Teen Drivers Need Auto Insurance In Arizona?

Yes, Arizona requires all drivers to have minimum amounts of liability coverage to help pay for third-party injuries and property damage after an at-fault accident.

Your agent may recommend that you purchase more than the minimum required coverage. Liability insurance helps cover your legal liability for someone else’s injuries and damage to their vehicle or other property but only up to the policy’s limits. You may be responsible for paying damages above your liability coverage out of pocket.

If your teen will drive a vehicle you financed or leased, the lienholder generally requires full coverage insurance, including comprehensive and collision coverage. This policy helps pay to repair or replace the vehicle after a covered accident or incident.

You may also be required to purchase guaranteed asset protection (gap) insurance. This policy helps cover the financial gap between the total amount due on the loan or lease and the insurer’s settlement after a covered accident if the vehicle is a total loss.

Is Auto Insurance for Teen Drivers Expensive?

Insuring a teen driver may cost more than buying the same coverage for a more experienced driver, depending on a few key factors. Insurers use proprietary algorithms to set premiums. They consider multiple factors, including the following:

• The driver’s risk profile, which may include their age, gender and driving history—Teen drivers are statistically more likely to trigger an auto insurance claim. Insurers charge higher premiums to offset this risk.  

• The claims history of anyone on the auto policy—If you’ve recently made an auto insurance claim, you may experience rate increases.  
• The value of the insured vehicle—Higher-value vehicles tend to cost more to repair or replace, which can trigger auto insurance premium increases.  
• The type of coverage you choose and the policy’s limits—Full coverage insurance costs more than a liability-only policy. Your agent can help determine which coverage is right for your situation.  

How to Get Auto Insurance for a Teen Driver

Contact Variety Insurance today to build your customized auto insurance policy or get an instant auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.