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Debunking The Most Common Myths About Teen Auto Insurance

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Any parent of a teen driver knows just how stressful it can be to watch your teen receive his or her license and begin driving. At the same time, this is a rite of passage for all teens and something you should also be proud of your child for accomplishing. If your teen is quickly approaching the stage of learning how to drive, however, there are some myths regarding teen auto insurance that you should know the truth behind.

Myth 1: Teens With Permits Don't Need Insurance

Many parents assume that when their child obtains a learner's permit, their current auto insurance company will automatically extend coverage to the newly permitted teen. This is true for some companies, but you should never assume this to be the case. It's always a good idea to contact your insurance agent to let them know that your teen has obtained a permit. More than likely, they'll extend coverage to your teen for little or no extra monthly cost. Either way, your teen needs to be insured behind-the-wheel, even if he or she just has a permit.

Myth 2: There's Nothing You Can Do About High Premiums for Teens

It's no secret that teen auto insurance premiums can be expensive due to the increased risk of accident involved with teen drivers. However, this doesn't mean that there aren't ways to save on your teen's auto insurance coverage once he or she becomes officially licensed. Many auto insurance companies, for example, offer a "good student" discount, which often applies to students with a "B" grade average or higher. Some other auto insurance companies also offer discounted rates for teens who take approved defensive driving classes; check with your insurance company to find out which programs are approved for discounts.

Myth 3: Minimum Coverage is All You Need

If your teen will have his or her own car upon being licensed, you might assume that buying the state-required minimum of liability coverage is enough--especially if you're buying your teen an older car without much value. However, with teen drivers, it often makes sense to consider some add-ons, such as roadside assistance or even accident forgiveness for added peace of mind. This way, in the event that your teen's car breaks down on the side of the road, he or she can receive the help that's needed as soon as possible. And with accident forgiveness, you could even avoid rate spikes in the event that your teen is involved in an accident.

Contact a service like LA Insurance to learn more.