Am I Required to Have Auto Insurance On A
Teenager

Parents may be wondering, "Am I required to have auto insurance on a teenager?" The fact is that all drivers must carry valid insurance to drive legally in most states. Driving without insurance coverage in place can lead to serious consequences.

Car Insurance Rates for Teenagers

If someone, whether they are a teen driver or an adult, is caught driving without car insurance or is unable to produce proof of insurance when asked to do so by a police officer, they may face these kinds of penalties:

• A fine
• Loss of driving privileges
• Possible jail term

The minimum level of insurance coverage that a person is required to carry is set by each state. Being underinsured is also against the law, and your insurance company or independent insurance agent can tell you exactly how much coverage you need to have in place to drive legally where you live.

Paying a fine is only one part of the penalty for driving without proper insurance coverage in place. The driver is also responsible for paying any court costs assessed by the judge in the case.

The person's driving privileges may be suspended for up to 12 months. This is considered a separate penalty from any court penalties. In some states, the driver is required to provide an SR-22 form to show the Department of Motor Vehicles (DMV) that they have adequate insurance coverage in place. If the insurance coverage lapses for any reason, the insurance company is required to notify the DMV immediately and the driver's license may be revoked.

Since you are required to have auto insurance on a teenager, the challenge becomes finding coverage at a price that is affordable. There are some things that a parent can do to help keep premium costs down.

Rather than apply for a new policy with the teen driver as the primary operator of the vehicle, a better choice may be to add him or her on to an existing policy. The cost will be lower than having the teen be subjected to the insurer's underwriting process to determine the level of risk they present.

Doing well in school can lead to lower insurance premiums. Students who are able to maintain a Grade Point Average (G.P.A.) of 3.0 or higher may be entitled to a discount on their car insurance coverage.

Submitting proof that a teen has successfully completed a driver's education course can also qualify the young person for a discount on his or her insurance coverage. You may want to check with the insurance company before enrolling to confirm that the program is recognized by the insurer.

The more driving the teen does, the higher the risk as far as the insurance company is concerned. Limiting the amount of driving the teen does for driving to and from school and/or work may help to lower the coverage costs.

Each insurance company has its own criteria for determining the level of risk that a potential insured driver presents. By shopping around, you can get the best possible rates for a teen driver.

The answer to the question, "Am I required to have auto insurance on a teenager?" is a resounding "Yes." The consequences of driving without insurance can be serious, and lead to higher insurance rates once the coverage has been reinstated. By shopping around for the best rates, parents can ensure that their teens are covered appropriately and avoid paying more than they have to.

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