Having a new driver in the family can be both exciting and nerve-wracking.
Besides your child’s safety, you may also be concerned about the cost of adding your young driver to your current policy and be wondering what coverage alternatives may be available for them.
As your teen driver gets ready to hit the road, they will need to obtain insurance coverage either through an existing family policy or an individual policy purchased in their name.
#1 – Should I Add My Teenager To My Insurance?
You may wonder, “Do I have to add my teenager to my car insurance?” The answer to that question will depend on how you’d like to address financial responsibility in the event of an accident.
For many families, it makes the most sense to combine policies for teenage drivers along with those of the adult drivers in the household. This scenario produces one bill to pay on a monthly or semi-annual basis. Also, many insurance carriers offer discounts for bundling policies under a single plan.
On the flip side, you may take on some risk by adding your teenager to your car insurance policy. For instance, if your teenager is involved in more than one accident or is responsible for more than one parking or driving violation, your insurance rate could be at risk of increasing or your policy may be canceled altogether.
Additionally, teenage drivers are statistically more likely to file insurance claims. A teenager’s driving record could impact other family members if an insurer deems the family too high a risk to renew due to infractions.
#2 – Can My Teenager Get Their Own Car Insurance Policy?
Many top car insurance carriers allow teenagers to purchase their own car insurance policies, or let their parents purchase individual car insurance policies on their behalf. However, purchasing a policy under a teenager’s name alone could lead to higher insurance costs.
If a teenage driver is solely responsible for paying their car insurance premium, then having an individual policy may help enforce a level of accountability. Also, placing a teenager on an individual policy could help mitigate the risk of policy cancellation for an entire family should the teenage driver incur infractions.
Ultimately, answering the question “do I have to add my teenager to my car insurance” comes down to personal preference over the logistics of managing and paying for policies, as well as mitigating risk.
#3 – How Much Does It Cost to Add a Teenager to Car Insurance?
Adding a teenager to your car insurance policy can substantially increase your insurance rate.
Although that can be a significant increase for just one additional driver, the cost of car insurance for teenagers has dropped in recent years. Teen drivers face higher coverage costs because they have little driving experience, which increases their odds of being involved in a motor vehicle accident.
Those statistics, as well as the considerable cost of insuring teen drivers, are the main reasons parents ask whether they have to add their teenagers to their auto insurance.
#4 – Can I Do Anything to Lower the Cost of Adding My Teenager to My Insurance?
Car insurance carriers offer several ways for you to lower the cost of adding your teenager to your car insurance policy.
Check carefully with your current carrier to determine the discounts it offers to younger drivers.
- Good Grades Discounts reduce policy costs for students with above-average grades.
- Driver Training Discounts offer cost reductions when your teen driver has taken an approved driver training class through their school or private lessons.
- Affordable Vehicle Discounts allow for lower policy costs when the teenager is the primary driver on a car which is wholly owned and eligible for lower cost coverage. Many coupes and sedans fit into this mold, as well as vehicles that offer advanced safety technology.
- Secondary Driver Discounts arise when the teen is simply an additional driver on a car already insured on the policy instead of associated with a vehicle as the primary driver.
- Multiple Policy Discounts enable cost savings to the overall policy when multiple policies are grouped, including multiple drivers, multiple vehicles, or the addition of other insurance types like renters or homeowners.
- Clean Driving Record Discounts reward even young drivers for maintaining a clean record, free from accidents and law enforcement citations.
#5 – Does My Teenager Need Car Insurance with Just a Permit?
Most states do not require drivers who only have a permit to carry car insurance in their name.
This statue exists because drivers with a permit instead of a license can only operate a vehicle when they are with a responsible adult. If the permit-holding driver gets a citation or is involved in an accident, the adult supervising their driving becomes financially responsible.
You can choose, however, to add your child to your policy as soon as they earn their permit, if your carrier allows drivers who do not have a license. Otherwise, they’ll need to be added to your policy or set up their personal policy as soon as they become licensed.
#6 – Do I Need To Get My Teenager Insurance For All My Cars?
You may not have to add your teenager to your car insurance for all your cars if they will not be driving all of those vehicles.
You’ll be able to save money on car insurance when you only associate your teenager with the vehicle or vehicles they will specifically be driving on a regular basis. You may be able to further reduce your costs by adding your teenager to the policy for your least expensive vehicle or as a secondary driver on another vehicle.
Summing It Up
Hopefully, this has answered your questions on adding your teenager to your insurance policy.
Make sure you discuss all possible discount opportunities with your agent or insurance representative and take the time to gather some quotes from other insurers to get the best deal on car insurance for your teen driver.
*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.