Insuring Teenage Drivers

by Oct 19, 2016

Home Page » Insuring Teenage Drivers

I get several calls a year from concerned parents of teenage drivers. For good reason, picture a teenager behind the wheel and liability comes to mind. Parents often ask me whether it is smart, as they have been advised by others, to insure the new driver under a separate policy and therefore insulate themselves from potential risk.

Registering and insuring a car in your teenager’s name might sound like a logical step toward liability protection as parents have so much more to lose. But there are some drawbacks:

  • Insuring a teenager alone will result in big premiums, expect the policy to cost about 25% more.
  • It is hard to determine just how much liability coverage you might need for your new driver, $1m, $5m?
  • You will have to deal with the motor vehicle, which is never an appealing option.

I recently spoke to a litigation attorney who works with insurance companies about this topic and found that this work around may not actually protect the parents in the end. A case can be made demonstrating that the parents provide the primary support for the teenage driver, thereby exposing parents to liability. Instead, he advised choosing a larger umbrella to manage the exposure.

Naturally small claim are not the concern, but the unexpected serious claim is better managed by a big umbrella, and in the end this is likely less expensive too.

If you have questions email Kyle at or call 203.698.9342.

Written by: Steve Shepard

Founder/Principal, Shepard Insurance Group. At Shepard Insurance Group we begin every relationship with a face to face meeting with the client. In a comprehensive discussion of coverage needs, personal concerns, objectives and finally appetite for risk, we can arrive at the proper insurance solution. Understanding the client is the first step to accurate execution.

October 19, 2016

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