What's so hard about insuring my teenage child? Just call my agent and add them to my policy, right? You could just go through the motions and accept that huge increase in your auto insurance premium. Or, you can do something about it. Consider this...

Cost - Your current insurer may have really liked your risk profile before the teen, but may not like teen drivers as much as another insurer. Since adding a teen will increase your premium by 50% to 100% on average, you have more to gain than ever by shopping at this time.

Example: Did you know that some insurers don't charge you for your teenage driver while they have their permit/Learner's License while others do?

Coverage - Teen drivers are much more likely to have an accident than the general population. OK, maybe not YOUR teen...but remember that YOUR teen will be in the car with OTHER teens. Remember peer pressure? It is overwhelming. Liability has two parts...likelihood and severity. The severity part pertains to your financial assets. While this part doesn't change, the likelihood side of the equation goes through the roof the moment your child gets their license. And as the parent/owner of the vehicle, you're exposed.

Example: You've always had limits of 100/300 ($100,000 per person, $300,000 per accident) for Bodily Injury Liability. Do you really believe that $100,000 is sufficient to compensate a victim of a major accident? Look at it this way: If you or your spouse were the victim, would $100,000 adequately replace lost income and additional expenses for the rest of your life? The cost of living (and the amount of jury verdicts) has increased significantly since insurance agents began recommending 100/300 limits over 20 years ago. Are you really adequately insured?

Advice & Tools - Insurance doesn't do anything to prevent an accident from happening. It's up to you and your teen to take the proper steps to minimize this risk together. Consider:

• Speaking with your teen about a Parent-teen driving contract - where you commit to be there for your child - no questions asked - if they call for you in a situation where they're uncomfortable (e.g. in an unsafe teen's vehicle) in return for their promise to drive responsibly.
• Openly discussing examples - We all sadly read in the newspaper about accidents where teens used poor judgment. Ask your teen what they would do in that scenario.
• When riding with your teen in the car, stay on point about good driving habits. Don't bring up controversial topics that distract them from the road, like forgetting to take the trash out or do their homework.
• Consider a GPS tracking device. While this may seem like "spying", it will give you the confidence you need to keep your imagination in check. Usually, your responsible teen will figure out that such a device will document their responsible behavior and will generate evidence that they'll use to argue extended curfews or boundaries. This evidence will give you confidence and build trust between you and your child. It may also earn you some discounts on your insurance!
• Refresh yourself/instruct your child - What should you do when you're pulled over? How do you make sure you don't run out of gas? How do you maintain your vehicle (e.g. battery, oil change)? When is it safe to pass another vehicle? What are some techniques to overcome peer pressure when others put you in danger? Remember that now more than ever it's important that you set the example when you're behind the wheel.

Insurance does nothing more than transfer the financial ramifications of an accident to a 3rd party (i.e. the insurance company). You still have to manage the inconvenience...and heaven forbid the tragedy...of a loss. A good agent will have already discussed all of this with you. Has your agent helped you properly prepare for this milestone in your child's increasing independence?

Putting your teenager on the road is a big responsibility for both you and your child. It's a time of newfound independence mixed with basic inexperience. The guidance you impart behind the wheel and the insurance coverage you provide should serve to protect and enable good habits for a lifetime of responsible driving. You have options at this time - we urge you to give us a call because insuring your teen driver can be easier than you think.

Call TOGA today for a personalized Insurance consultation on all your car insurance needs. Drive Confidently.