Adding Your Teen to Your Car Insurance: What You Need to Know

Adding Your Teen to Your Car Insurance:

What You Need to Know

When does my teen need to be added to my car insurance?
Most carriers require your teen driver to be added to your car insurance once they obtain their restricted license. Most carriers do not require permitted drivers to be added, but you should check with your insurance advisor to be sure.

Should I add my teen to my existing policy or buy separate insurance for them?

It's recommended that the teen driver be added to your existing policy. Why is this? Well, many of our clients ask the same question and the answer is different for everyone's individual situation. But nine times out of ten, it's best to add your teen to your existing policy. Here's why: it's cheaper due to having multi-line or multiple vehicle discounts that you qualify for, your teen does not, and you get better pricing due to the longevity of your insurance history versus your teen's. The only time it really makes sense to have them on their own policy is if they're 18 years or older, a high-risk driver, they're no longer dependent on you, they own their own car, or you don't want to be liable for them.

How do I add my teen to my existing policy?

Adding a new driver to your policy is easy. We'll need their legal name, date of birth, their driver's license number, and any other supporting documents for discounts they may be eligible for, like a report card or defensive driver training certificate.

How can I expect my insurance costs to change?

Every household is different. You and your price will be specific to you and your household characteristics. On average, we see anywhere from $80 to $120 more a month. But this can double if you're also adding a vehicle for this driver. There are few discounts your teen driver may qualify for. The first is a good student discount. On average, this discount reduces premiums by 7%. Carriers extend this discount to students who have at least a 3.0 or higher GPA and generally require a report card or transcript to prove their grades.

Everyone thinks they're a safe driver.
Sadly, safe driving is a subjective term. One way to keep your teens safe on the road is to set clear expectations on acceptable driving behavior. You can use tools to monitor your teen's driving behaviors like apps on their phone, which can monitor speed, hard braking, acceleration, and most importantly, distracted driving. Insurance is in place if things do happen, but avoiding accidents and tickets is the best way to keep your insurance costs low. The most important thing is keeping your teens safe by developing smart driving habits