Your Teen’s Graduated Driver’s License

Your teenager is begging for the keys, but as a parent you want them to be as safe as possible behind the wheel. Short of locking them up until they are 18, parents of teen drivers can breathe a sigh of relief knowing their son or daughter has some major driving restrictions with a graduated driver’s license. An added bonus to the teen safety—reduced car insurance rates.

What is a Graduated Driver's License?

Because of their lack of experience, 16-year-olds have the highest crash rates of all drivers, according to the Insurance Institute for Highway Safety (IIHS). This is where the graduated driver’s license steps in. The graduated driver's license is a set of restrictions on new drivers, allowing teens more time to develop safe driving skills and hopefully reduce accidents.

While programs vary by state, they are based on three stages of licensing. First, your teen studies road rules and receives 50 hours of supervised driving time. Second, your teenager passes a driver's test and receives an "intermediate" license that restricts driving situations. Third, after a specific amount of time, or a certain age, the intermediate license is exchanged for a license with full privileges.

Graduated License Restrictions

Standard graduated driver’s license restrictions prevent your teen from driving after 9:00 p.m., and limit the number of teenaged passengers to one. These restrictions are based on research that indicates almost half of teen deaths occur after 9:00 p.m., and the chance of an accident increases up to three times when there are other teenagers in the car (IIHS). The good news is these situations can be avoided. Studies show that nighttime driving restrictions alone reduce accidents by 40 to 60%.

Some states have added seatbelt provisions, cell phone restrictions, and violation penalties including license suspension. Check with your state’s Department of Motor Vehicles for specific rules.

Teen Drivers and Insurance Rates

Adding a teen to your car insurance policy will have an affect on your car insurance rates. Because new drivers are seen as a higher liability to insure, chances are your car insurance rates will increase.

But there are still ways for you to save money on your car insurance, even with a teen driver. By adding your teenager to your own policy instead of purchasing a separate one, you ensure that your teen receives discounts you've accumulated, such as credits for having continuous insurance and multiple cars on the policy. If your teen has a B grade point average or better and has taken a driver's training course, your insurance company may offer additional discounts of up to 25%.

Choosing an older car for your teen to drive can keep costs down and increasing the deductibles on that car can mean additional savings. SUVs and high-performance sports cars increase the likelihood of rollovers or dangerous behavior such as speeding. Insurance rates will reflect this, especially if a teen is the driver.

If you’re ready to add a teen driver with a graduated driver’s license to your car insurance policy, compare car insurance rates at InsuranceRates.com.