You may know the importance of obtaining auto insurance once your new driver in your family receives his or her license. But, what about from now until then? The good news is the process of obtaining auto insurance for your new driver is not complex. There are a few key things to know before you choose to invest in a new policy. What should you do before you start teaching a person to drive?
Know the Laws
As a new driver learning to drive, the first step is to obtain a driver’s permit. During this process, individuals learn the rules of the road. To pass that initial exam, individuals should have some basic understanding of the laws. Then, when he or she obtains a temporary driver’s permit, they can get behind the wheel.
At this point – between having a driver’s temporary permit and obtaining an actual license – the driver usually does not need his or her own policy. There is no need to obtain a new policy for your teen as he or she is learning to drive. Your insurance policy will likely cover them.
Driving an Insured Car
However, in almost every state, individuals learning to drive may only do so in a car that has insurance on it. For example, if a child is learning to drive on his parent’s car, the parents must have car insurance in place on that vehicle. The policy does not need to be in the teen’s name. Rather, it should be in the owner’s name. As long as the vehicle has coverage, the teen driver does as well. Keep in mind, in some cases, you might need to list the teen driver as an insured party on your policy. However, this rule varies. Ask your agent about your requirements.
The reverse is true, too. If a teen gets into a friend’s car, and that car does not have coverage, the teen has no coverage. The teen does not have automatic coverage under a parent’s policy. In this situation, any damage done is likely the responsibility of the teen driver or the licensed individual in the car with him or her.
What Should You Do Now?
As your teen gets ready to obtain his or her driver’s license, it is very important to know what your risks are. Talk to your insurance agent at 208-664-6000 about the coverage you need after they pass and obtain a permanent license. At this point, the policy should specifically name the teenager. The parent can still be the owner of the vehicle. It tends to be less expensive if the parent remains the owner and the policy lists the new driver as a user of the car.