Adding a teen driver to your car insurance
Buying a stand-alone policy for your family’s newest driver can be pricey—while teenagers usually drive fewer miles than adults, they aren’t as experienced behind the wheel and are more likely to be in an accident. Here’s why it’s almost always far less expensive (and beneficial) to add your teen driver to your existing policy:
Affordability: Your teenager will share in the savings you’ve earned as a longtime driver with a clean driving record and an established credit history.
Control: Since you already monitor the policy, you can easily add and update coverages to make sure your teen driver and their vehicle have the right protection.
Flexibility: If your household has multiple vehicles, your teenager will be insured when driving your car and vice/versa.
Convenience: You’ll only have to manage one policy.
Is it ever more affordable for my teen to have a separate policy?
Rarely. But, if you drive a luxury vehicle or an expensive sports car and your teen does not, it may be cheaper for your teenager to have their own policy.
How does coverage work for teen car insurance?
Sharing a policy
If you add your teen driver to your policy, they’ll benefit from the same protection that you do:
All covered drivers have access to all cars listed on a policy: At Safe House Insurance, any driver listed on your policy is covered to drive any vehicle listed on your policy. That means your teenager will be insured up to your policy’s limits when driving your vehicle and the same goes for when you drive their car.
Liability limits are shared: Your teen driver won’t have a separate liability limit, which means they’ll have the same amount of liability coverage as any other driver on your policy. For instance, if your bodily injury per accident limit is $100,000 and your teen driver injures another driver in a covered accident, your insurer can pay up to the full limit.
Because teen drivers generally pose a greater accident risk, you may want to increase your limits of liability on your policy—especially if your current liability limits aren’t covering your total net worth.
Extra coverages also apply to your teen: If you have roadside assistance, loan/lease payoff, rental car reimbursement, or disappearing deductibles on your policy, your teen driver will enjoy all the same coverage and benefits.
If you decide your teenager should have their own policy, here are some things to keep in mind:
- Ensure the right amount of liability: Choose a liability limit that will safeguard your assets, in case you’re liable because your teen driver caused damages or injuries to someone else.
- Select affordable deductibles: If your teenager will be financially responsible for the policy, make certain they can pay the deductible amount out of pocket in case of a claim.
- Physical damage coverages may not be necessary: If the vehicle on your teen’s policy is paid off, comprehensive and collision coverage may not be imperative. It may not be worth paying for one or both on an older vehicle worth less than a few thousand dollars.
What is the average cost for teenage car insurance?
It’s no secret insurance for teen drivers can be expensive; they have a greater tendency to drive distracted, speed, tailgate, and not wear a seatbelt. That risk can result in higher car insurance rates. The exact price, however, can vary greatly based on age, ZIP code, driving history, gender, and type of vehicle.
How to afford car insurance for a teenager
While it can be challenging to find cheap auto insurance for teens, you can lower the cost by maximizing savings opportunities. At Safe House Insurance, we offer a variety of discounts tailored to teen drivers:
- Good student: B average or better? Your young driver earns a discount for good grades.
- Multi-car: If your teenager has their own vehicle, we’ll chip in another discount just for having more than one vehicle on your policy.
- Teen driver: If a driver on your policy is 18 years old or younger, we’ll add a discount.
Will the rate drop when my teen turns 18 or 21?
At Safe House Insurance, rates drop by an average of 13% when a driver turns 19 and another 7% at 21. As your teenager becomes more experienced and avoids tickets and accidents, the price for teen auto insurance should keep decreasing.
More FAQ for teen car insurance
Help! My teenager received a permit and is learning to drive. What’s my next step?
Great! Immediately add your family’s newest driver to your policy by calling us or going online. As soon as your teenager is added, they’ll start building an insurance history which may help them save on car insurance rates in the future.
Do I have to add my teenager to my car insurance?
Auto insurance is required by law in most states, so if your teen plans to get behind the wheel, they need to be added to your insurance or purchase their own policy. Also, depending on your state, you could be liable for any damages or injuries your teenage driver causes if they’re under 18.
What happens when my child goes to college?
Your college student can be covered on your policy as long as your address is still considered their primary residence. If your child will have a car on campus, let your insurer know the ZIP code where the vehicle will be kept the majority of the time.
In some states, you can’t cover their car on your policy if the vehicle will be kept at an out-of-state college. In those cases, your son or daughter would have to purchase their own policy.
Learn more about car insurance for college students.
Blog by Progressive: https://www.progressive.com/answers/teen-driver-insurance/