Do I have to add my teenager to my car insurance? If you’re a child’s parent, most likely, they’re eager to drive soon.
While you are preparing mentally as you prepare, you’ll also have to plan financially. This means you need to figure out the cost it will cost you to add your child’s name to your car’s insurance coverage.
No matter if it’s your very first or 3rd, adding a teenage driver to your insurance policy could be expensive. Teen drivers typically are the ones to pay the most of any category, but you can find ways to reduce the cost.
How Much Does Teen Driver Insurance Cost?
When a driver looks for insurance on their car, specific factors such as driving history or marital status, and credit history play an important role in determining what these prices will cost. But, teens don’t usually have much expertise in one area, so you need to be aware of other aspects.
Based on the Insurance Information Institute, what type of vehicle you own and the amount you make use of it will greatly influence car insurance rates. If your child is planning to drive a more modern vehicle, you can expect to pay more for insurance on your car than you would with a cheaper older model.
Is It Necessary For Me To Combine My Teen Driver’s Insurance With My Auto Insurance?
No. It is not necessary to add your child’s name to the insurance coverage for your vehicle. However, it’s cheaper than purchasing their policy. “You’re not required to add a teen driver to your car insurance, but it’s more cost-effective to do so,” says Melanie Musson, a car insurance and CarInsuranceComparison.com.
“From the moment a student driver takes the steering wheel, drivers must know whether their child is covered by their insurance plan or if they require it to be added to the plan,” Musson says. Musson. “And should a child cause an accident, then the parent’s insurance provider will be accountable for any injuries.
When you add a teen driver to your car insurance policy, be sure to know who the vehicle’s owner is. Remember that if they own the car owned by your teen, the vehicle will not be eligible to be added to the policy and will be required to buy their own.
However, if a teenager is subject to a parent’s policies and cannot change the policy for so long as they reside within the household and operate one of the family vehicles.
Like any other driver, it is best to carry the minimum required insurance as with any driver. In a crash, driving without insurance is illegal and can have serious financial and legal consequences.
Covered Under Your Policy
It might be financially beneficial to add your teen’s name to your insurance plan. “If you were to compare the increase in premiums that the teen driver pays on a parent’s insurance policy with the expense of an independent insurance policy for the same teen driver, you’d find that it is cheaper to get an insurance policy from the parent,” Musson says. Musson.
Carinsurance.com according to Carinsurance.com, adding the driver of a female 16 years old will add $1,593 to a parent’s comprehensive insurance policy. It’s around $651 annually to cover the minimum amount for the same teenager.
If you add a male, it’s slightly more costly. The typical cost for the addition of a male aged 16 costs $1,934 annually on the full coverage plan that adds $769 for minimum coverage.
Teen male drivers have an average of 129% more costly than female teenagers that averaged 107% higher cost. Yet, adding a teen to the parent’s insurance policy is considerably less expensive than having the teenager get their insurance.
Teens Obtaining Their Policies
The average cost of full coverage insurance for a driver who is 16 is $6,930.
Below, you will be able to compare the average rate for teenagers aged 16 years old, 17-year-olds, and 18-year-olds based on their policies.
Average Full Coverage Premium
Average Minimum Coverage Premium
Non-owner Car Insurance
Non-owner car insurance provides coverage for those who don’t have cars; however, they use rental cars such as ridesharing or borrowed vehicles to travel. While it’s tempting to think about non-owner insurance for your teenager, parents must be aware that insurance companies don’t offer policies for drivers who have accessibility to the family vehicle.
Discounts for Teen Drivers
There are various options to reduce the price of teenager insurance on cars. “While we’ve been aware that high grades can lead to scholarships and other opportunities to study, having a 3.0 GPA could be a good way to get discounts for students,” says Lauren Fix, an expert on automotive on Car Coach Reports, an automotive industry news website.
While it is dependent on the insurance company, the best students could save as much as 25% off the cost of car insurance.
The most effective way to get a discount on your teen’s car insurance for drivers is to search for comparisons. Find a variety of quotes and then pick the one that most resonates with you.
Another method that is often overlooked to reduce the cost of insurance for all drivers, including teens and teenagers, is to enroll in an approved driving school. There are driving schools in your area which offer defensive driving lessons, or drivers can call their local National Safety Council or AAA to find driving schools in their area.
The rates will vary based on the insurance company, but you should expect to save between 10 and 15 percent on your teenager’s auto insurance if they complete one of these courses.