As another school year kicks off, many families in the Pittsburgh area are juggling new schedules, school supplies, and—for some—new teen drivers. Whether your teenager is commuting to high school, driving themselves to sports practice, or heading to college with a car, it’s crucial to review your auto insurance coverage.
At Panichelle Insurance, we understand how exciting and stressful this time can be. That’s why we’ve put together a back-to-school guide for parents to help ensure your family—and your finances—are protected when your teen hits the road.
1. When to Add Your Teen to Your Auto Insurance Policy
If your child has a learner’s permit, you typically don’t need to add them to your policy just yet. But once they receive their junior license, it’s time to notify your insurance agent.
It’s important to act quickly—insurers expect every licensed driver in your household to be listed on your policy. Even if your teen only drives occasionally, they must be disclosed. If not, a claim could be denied or only partially covered in the event of an accident. Notifying your agent early also gives you the chance to compare rates across carriers and ensure you’re getting the best deal.
2. Why “Family Car” Coverage Isn’t Always Enough
Many parents assume that if their teen is driving the family car with permission, they’re automatically covered. But that’s not always the case. Insurance companies treat teen drivers differently than occasional adult users. Because your teen lives with you, insurers expect them to be a named driver on the policy—not just an occasional user.
If your teen is not listed and they cause an accident, the insurer may only pay out the state minimum coverage, or worse, deny the claim entirely. That could leave you financially responsible for medical expenses, vehicle damage, and legal costs.
3. How to Save on Teen Auto Insurance
There’s no sugarcoating it—adding a teen driver to your policy will increase your premium. However, there are several ways to reduce the cost.
One of the most common is the good student discount. If your teen maintains a B average or higher, many insurance companies will offer a discount. Taking a driver’s education or defensive driving course can also help lower premiums.
Some insurers offer telematics or usage-based programs. These involve installing a device in your teen’s car or using a mobile app that tracks driving habits like speed, braking, and time of day. Safe driving behaviors can lead to substantial savings.
And if your child is going away to college and won’t have regular access to a car, you might qualify for a “student away” discount, as long as the school is a certain distance from home.
Every insurance company handles discounts differently. At Panichelle Insurance, we shop across multiple carriers to find the best combination of coverage and savings for your family.
4. Review Your Coverage Limits
Teen drivers are more likely to be involved in accidents, which means it’s essential to carry higher-than-minimum coverage.
Start by reviewing your liability limits. Pennsylvania’s state minimum coverage often isn’t enough to cover today’s medical bills or property damage. We generally recommend limits of at least 100/300/100 to protect your family in the event of a serious accident.
Also make sure you have uninsured and underinsured motorist coverage. This protects your teen if they’re hit by a driver who doesn’t have enough—or any—insurance.
If your teen will be driving a newer or financed car, collision and comprehensive coverage is a must. These cover repairs or replacement if the car is damaged in an accident, stolen, vandalized, or hit by severe weather—events that are all too common in high school parking lots.
And don’t forget personal injury protection (PIP) or medical payments coverage. This can help with hospital bills regardless of who’s at fault.
To go one step further, consider adding an umbrella policy for additional liability protection. It’s an affordable way to protect your finances in the event of a major claim.
5. Choosing the Right Car for Your Teen
The vehicle your teen drives can have a big impact on your insurance premium. Safer, midsize sedans generally cost less to insure than sporty coupes or high-performance SUVs.
Cars with good crash-test ratings and safety features like automatic emergency braking and blind-spot monitoring can also help reduce premiums.
Before purchasing or assigning a car to your teen, give us a call. We can provide a quote in advance so there are no surprises.
6. Encourage Safe Driving Habits
Helping your teen develop safe driving habits not only keeps them safe—it helps keep premiums low.
Set expectations for limited nighttime driving and limit the number of passengers in the car. Statistically, more passengers means more distractions and a higher likelihood of an accident.
Make phones off-limits while driving. There are apps that can block calls and texts while the car is in motion. Also, regularly review driving habits with your teen, especially if you’re using a telematics program.
7. Special Considerations for College Students
If your teen is heading off to college, let your insurance agent know.
If they’re taking a car with them, the policy’s “garaging address” may need to be updated, which could affect the premium. If they’re leaving the car at home, you may qualify for a discount since they won’t be driving regularly.
Attending college in another state? Different states have different insurance requirements. We’ll help make sure your policy remains compliant and provides the right protection.
8. What to Do After an Accident
Make sure your teen knows the basics of what to do if they’re involved in an accident:
- Move to a safe location.
- Call 911 if anyone is hurt or if there’s significant damage.
- Exchange insurance and contact information with the other driver.
- Take photos of the scene.
- Contact Panichelle Insurance as soon as possible.
Quick reporting can make a big difference in how smoothly a claim is handled.
Let’s Get Ready for a Safe School Year
Adding a teen driver to your insurance policy may seem overwhelming, but it doesn’t have to be. At Panichelle Insurance, we’ll help you navigate the process, find discounts, and make sure your family has the right protection.
Before the school year begins, give us a call or visit us online. We’ll help you check this important task off your back-to-school list.