A: If your teen will only be driving your vehicles, you need to add them as a driver to your policy (before they drive once licenced). If the number of vehicles in your household is less than the number of drivers, they can be added as an occasional operator if they only use your vehicles occasionally. Principal operator rates usually apply if the number of vehicles you have is equal to or greater than the number of drivers. The insurance applicable to your teen will be, in general, the same as provided to you under the policy.
If your teen is fortunate to own a vehicle, they will need their own policy. We recommend a limit of at least $1,000,000 Third Party Liability Coverage; however, strong consideration should be given to increasing this limit. Increasing to $2,000,000 is surprisingly affordable and provides much greater protection in the event of an accident. Whether collision coverage is purchased is a personal decision. Factors such as the age and value of the vehicle to be insured and the premium cost should be weighed against the advantages of the coverage. Comprehensive coverage (fire, theft, windstorm, hail etc.) should be considered as in many cases it is relatively affordable. Your insurance broker can help you decide what works best for you and your teen.