Should I Add my Teen to my Car Insurance Policy?

by Bianca Garrison - April 30, 2020
Smiling female teenager sitting on the drivers seat of a car holding up the keys

Your teenager has just earned their driver’s license and is ready to get behind the wheel. You may be excited but a little nervous too. A new driver in the household can have many benefits, but it can also be costly. Car insurance for teens can be confusing and pricey, so we’ve drafted some tips to help with the confusion and possibly reduce the cost of insuring your teen driver.

When to Add a Teen Driver to Your Auto Insurance Policy

One of the most common questions from parents is when should they add a teen driver to their car insurance policy. As soon as your teenager has a valid driver’s license, they should be added to your policy if they are not getting their own. 

Most insurers require that you add all household members to your policy. If your teenage driver is not and will not be operating your vehicle, you may have the option to exclude them (depending on your insurance).

Excluding an operator from your auto insurance policy means they will not be covered to drive your vehicle(s). 

How to Save Money on Teen Car Insurance Rates

Teen car insurance rates can be high because of their lack of driving experience. To help make car insurance premiums a little lower, insurance providers have discounts for young drivers. 

Student Away Discount

This discount is for college students who are away and only use the car while at home during school vacations and holidays.

Good Student Discount

You typically qualify with a GPA of 3.0 or higher. This discount can be used for high school and college students.

Driver Training Discount

Some car insurance providers offer a discount for driving training courses. Others have discounts for defensive driving courses. 

Family Plan Discount

There are companies that offer a specific discount for unmarried young adults under age 21 who live with their parents.

Should My Teen Get Their Own Car Insurance Policy?

A separate car insurance policy just for your teenager may be expensive, and it would not qualify you for bundling or family discounts. Teen drivers are some of the “riskiest” to insure. According to the Centers for Disease Control and Prevention, the risk of motor vehicle crashes is higher among teens aged 16-19 than among any other age group.

If your teenager has their own vehicle registered in their name, they may need to have a separate insurance policy.

Having a separate policy may help reduce liability for the parents. Lawyers will often name both the driver and the owner of the vehicle in a car accident lawsuit. But, if your teen is a minor, you may still be responsible for damages. 

Reliable Car Insurance For Teens

If your newly-licensed teenager is prepared to drive, then be sure to call your local Bluefire agent. They can help you and your family get the coverage you need to protect them. Call today for a free car insurance quote. 

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