Parents experience many milestones with teenagers — getting a driver's license is one of them. But as exciting as it can be for them to hit the road, adding a teenage driver to your auto insurance policy can also be intimidating. Teenagers are more likely to be involved in accidents than seasoned drivers, which can cause insurance rates to skyrocket. Adding a teenage driver to your auto insurance policy can impact your premiums, but there are steps you can take to reduce the impact.

Understanding the Risks

Insurance companies typically base their rates on risk. Teen drivers are considered higher risk because they have limited experience behind the wheel and may not exercise good judgment. Statistically, teen drivers are more likely to speed and engage in distracted driving, making them more prone to accidents. Because of the increased risk, adding a teen driver to your policy can significantly increase your insurance premiums.

Ways to Manage the Increase

While it's true that adding a teenage driver to your policy will usually increase your premiums, there are a few steps you can take to mitigate the cost. One option is to enroll your driver in a safety or driver's education program. Many insurance companies offer discounts for drivers who complete these courses. Another option is to consider raising your deductible. While this may increase your out-of-pocket expenses in the event of an accident, it can also lower your monthly premiums.

Exploring Policy Options

Review and understand your policy options before adding a teenager to your policy. For example, if your child attends college in another state, you may need to adjust your policy to reflect that. Additionally, you may want to consider purchasing a separate policy for your teenager to help mitigate the impact on your existing policy and protect your assets. Talking to your insurance company about your options can help you find the best policy to meet your needs.

Monitoring Your Teenager's Driving

Once your teenager is behind the wheel, monitoring their driving habits is important. Most insurance companies offer tracking systems that allow you to monitor your child's driving behavior, such as speed, braking, and distance. Using these types of systems can help you identify issues and address them with your child before they become a bigger problem.

Adding a teenage driver to your auto insurance policy is a big step that can raise your insurance premiums, but there are steps you can take to mitigate the impact. Understanding the risks, exploring policy options, and monitoring your teen's driving habits can all help you protect your family while keeping your premiums as low as possible. Remember, too, that insurance companies are all different, so take the time to find one that really meets your needs and gives you the right coverage at the right price.

For more information, contact an insurance company near you.