What kind of insurance do you need for a teen driver?

There is a time in every family when Mom and Dad come to the sudden realization that their child is growing up. For many, that is when their son or daughter is about to turn 16 and ready to start driving.

Don't wait until the day the law says Junior is ready to get behind the wheel to start thinking about insurance. If you give it some thought well in advance, adding a teenager to your auto insurance policy won't have to cause sticker shock.

So what kind of insurance do you need? Many insurance agents say it's best to keep the same coverage in place for the teenager as you have for yourself:

* Liability - Protection from risk associated with property damage and bodily injury to others.

* Comprehensive coverage - Protection from the cost of non-collision damages, such as vandalism, theft and weather-related damage.

* Collision - Protection from the cost of repairing damages to your own vehicle caused by a collision with another object.

* Medical Payments - Pays medical costs to you or other parties for injuries sustained in a motor vehicle accident.

* Uninsured Motorist - Protection from the costs of an accident caused by another driver with insufficient insurance or no insurance at all.

It is also a good idea to carry coverage for towing in case the vehicle breaks down on the side of the road, leaving the driver stranded.

Until they turn 18, teenagers can't buy car insurance on their own, so if they want to drive, their parents will need to either add the child to their existing policy, or purchase one for them. According to LeaseGuide.com, you can expect it to cost between $500 and $3,000 per year to add a teenager to your policy. The cost is so high because teenagers have higher crash rates than older drivers.

To keep costs down as low as possible, be sure to look into all the different insurance discounts offered by your company. If you have both your auto and homeowners or renters insurance with the same company, make sure you are getting a multi-policy discount. A good student discount, which rewards teenagers for their commitment to doing well in school, is another easy discount to get. Many insurance companies also offer incentive programs families can participate in to keep costs down.

Holding your child accountable for the deductible is another way parents can make sure their teenage driver will take responsibility for their actions.

Courtesy of ARAcontent